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29 July 2015
Belleville Man Indicted for Firearm OffenseRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Joseph Capeheart, 28, of Belleville, was indicted last week by a federal grand jury, on the charge of Unlawful Possession of a Firearm by a Convicted Felon. The charge carries the maximum penalties of ten years in prison, a $250,000 fine, and three years of supervised release. Capeheart is detained, that is, held without bond, pending his arraignment hearing set for August 13, 2015.
The indictment alleges that on or about May 21, 2015, in St. Clair County, Capeheart possessed a Western Auto Revelation, model 100, caliber .22 bolt action rifle, bearing no serial number. The indictment also alleges that Capeheart had previously been convicted on April 13, 2013, of the felony offense of Unlawful Possession of Weapon by Felon.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge and is entitled to a fair trial at which the United States must prove guilt beyond a reasonable doubt.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Illinois Department of Corrections. The case is being prosecuted by Special Assistant United States Attorney Vanessa T. Lu.
Battlefield Man Sentenced for Distributing Tons of MarijuanaRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Battlefield, Mo., man was sentenced in federal court today for his role in a conspiracy that distributed thousands of pounds of marijuana in southwest Missouri.
Jorge Torres, Jr., 31, of Battlefield, Mo., was sentenced by U.S. District Judge Stephen R. Bough to seven years in federal prison without parole.
On Feb. 10, 2015, Torres pleaded guilty to participating in a conspiracy to distribute marijuana in Greene County, Mo., and elsewhere from April 1, 2010, to June 19, 2013. Co-defendants Sean Bond, 39, of Republic, Mo., and Brian D. Hanson, 30, and Brenda Swearingin, 57, both of Springfield, Mo., also pleaded guilty to their roles in the drug-trafficking conspiracy.
Torres admitted that he distributed a total of approximately 120 pounds (54.36 kilograms) of marijuana, which he obtained from Bond, to Jordan Hitchcock, 22, of Springfield. Hitchcock has pleaded guilty in a separate but related case and awaits sentencing. Hitchcock paid Torres $650 to $750 per pound of marijuana. Hitchcock would then distribute the marijuana he obtained from Torres to others. Torres made approximately $50 per pound of marijuana sold.
Bond, Hanson and Swearingin were each sentenced on Tuesday, July 28, 2015.
Bond, who was sentenced to 12 years in federal prison without parole, arranged for Hanson and others to pick up marijuana from individuals outside of Springfield, then transported the marijuana to Springfield for Bond to distribute to other persons. Bond and Hanson also traveled together to Texas to obtain marijuana that had been smuggled into the United States from Mexico.
Hanson, who was sentenced to one year and one day in prison, admitted that he was responsible for transporting between 1,000 kilograms and 3,000 kilograms of marijuana into southwest Missouri.
Swearingin, who was sentenced to five years of probation, also pleaded guilty to illegally possessing a firearm in furtherance of a drug-trafficking crime. Swearingin admitted that she purchased pound amounts of marijuana from Bond each month for about two years and distributed it to others. She received approximately 10.872 kilograms of marijuana from Bond during her involvement in the conspiracy. When law enforcement officers executed a search warrant at Swearingin’s residence, they discovered a Hefty Freezer bag that contained approximately 173 grams of marijuana under a mattress in the guest bedroom. They also found a loaded Taurus .22-caliber handgun in Swearingin’s purse.
In addition to the drug-trafficking conspiracy, Bond and Hanson each pleaded guilty to participating in a conspiracy to launder the proceeds of marijuana sales. For example, Hanson gave Bond a 2002 BMW 745i and a 1969 Chevrolet Chevelle to pay a drug debt. Hanson purchased a 2003 Ford Crown Victoria at an auto auction, using proceeds from the sale of marijuana. Hanson then used this vehicle to transport marijuana from Houston and Kansas City, Mo., to Springfield.
Bond also admitted that he purchased a Wellcraft 3200 Martinique boat (which he registered in his father’s name), in part with drug proceeds, and a 2007 Cadillac Escalade that he used to distribute marijuana to customers in the Springfield area. Bond also used drug proceeds to purchase a 2002 BMW 725i, a 2002 Firebird pro-mod race car, a 1968 Chevrolet Camaro, three go karts, a 2006 Haulmark trailer and a 2004 Ford F350. That property has been seized by law enforcement officers and is subject to be forfeited to the government.
This case was prosecuted by Assistant U.S. Attorney Randall D. Eggert. It was investigated by the Drug Enforcement Administration, IRS-Criminal Investigation, the Missouri State Highway Patrol, the Springfield, Mo., Police Department and COMET (the Combined Ozark Multi-jurisdictional Enforcement Team).
Associate of Lucchese Organized Crime Family Sentenced to 30 Years in Prison for Racketeering and Other CrimesRead the Press Release
Two More Conspirators to be Sentenced This Week
CAMDEN, N.J. – An associate of the Lucchese organized crime family of La Cosa Nostra (LCN) was sentenced today to 30 years in prison for participating in a racketeering conspiracy and related offenses, U.S. Attorney Paul J. Fishman announced.
Salvatore Pelullo, 48, of Philadelphia, an associate of the Philadelphia and Lucchese LCN families, was sentenced today by U.S. District Judge Robert B. Kugler to 360 months in prison. He was convicted in July 2014, along with Nicodemo S. Scarfo, 50, of Galloway, New Jersey, a member of the Lucchese organized crime family; William Maxwell, 56, of Houston, a Texas attorney; and John Maxwell, 63, of Dallas, of racketeering conspiracy and related offenses, including securities fraud, wire fraud, mail fraud, bank fraud, extortion, money laundering and obstruction of justice, after a six-month trial before Judge Kugler in Camden federal court.
Scarfo was sentenced on July 28, 2015, to 30 years in prison. The Maxwells are scheduled to be sentenced July 30, 2015.
According to documents filed in this case and the evidence presented at trial:
In April 2007, Pelullo, Scarfo and others conspired to take control of FirstPlus Financial Group Inc. (FPFG), a publicly held company in Texas, by using threats of economic harm to intimidate and remove FPFG’s management and board of directors, and to replace them with people beholden to Pelullo and Scarfo, including the Maxwell brothers. Once the takeover had occurred, FPFG’s new board of directors named William Maxwell as “special counsel” to FPFG and John Maxwell as the company’s CEO, positions that they used to funnel $12 million to themselves, Pelullo and Scarfo through fraudulent legal services and consulting agreements. Pelullo and Scarfo used their illicit gains to fund extravagant purchases.
The indictment also named as conspirators Scarfo’s father, Nicodemo D. Scarfo, or Scarfo Sr., the imprisoned former boss of the Philadelphia LCN family; and Vittorio Amuso, the imprisoned boss of the Lucchese LCN family. Five other defendants – Cory Leshner, Howard Drossner, John Parisi, Todd Stark and Nicodemo S. Scarfo’s wife, Lisa Murray-Scarfo – previously pleaded guilty to various charges related to their roles in the conspiracy.
In addition to the prison term, Judge Kugler sentenced Pelullo to five years of supervised release and ordered him to pay restitution of $14 million.
U.S. Attorney Fishman credited special agents of the FBI in Newark, under the direction of Special Agent in Charge Richard M. Frankel, with the investigation leading to today’s sentencing. They also thanked the U.S. Department of Labor-Office of Inspector General’s Office of Labor Racketeering and Fraud Investigations New York Region, the FBI’s Philadelphia Division and the Bureau of Alcohol, Tobacco, Firearms and Explosives for their roles in the case.
The government is represented by Assistant U.S. Attorneys Steven D’Aguanno and Howard Wiener of the District of New Jersey and Trial Attorney Adam L. Small of the Criminal Division’s Organized Crime and Gang Section.
Defense counsel: J. Michael Farrell Esq., Wenonah, New Jersey
Albuquerque Man Pleads Guilty to Distributing Child Pornography ChargeRead the Press Release
ALBUQUERQUE – Ruben Nieto, 45, of Albuquerque, N.M., pleaded guilty this morning in federal court to an indictment charging him with distributing child pornography. The guilty plea was entered without the benefit of a plea agreement.
Nieto was arrested by the FBI on Nov. 13, 2014, based on a criminal complaint charging him with distribution of a visual depiction of a minor engaged in sexually explicit conduct and possession of a visual depiction of a minor engaged in sexually explicit conduct. Nieto was charged with committing both offenses in Bernalillo County, N.M., from March 24, 2014 through March 27, 2014. On Dec. 3, 2014, Nieto was indicted and charged with distributing child pornography.
According to court filings, the FBI initiated a federal investigation into Nieto in May 2014, after receiving a referral from the Bernalillo County Sheriff’s Office (BCSO) and the New Mexico Office of the Attorney General (NMOAG), both of which are members of the New Mexico Internet Crimes Against Children (ICAC) Task Force. In Jan. 2014, investigators identified an IP address that was being used to download and share child pornography. Investigation revealed that the IP address was subscribed to the residence in which Nieto lived until April 2014. In May 2014, investigators executed a search warrant at the residence and seized computers and computer-related media that contained child pornography after learning that Nieto regularly used the computer while he lived in the residence.
Nieto remains in federal custody pending his sentencing hearing. At his sentencing hearing, which has not yet been scheduled, Nieto faces a federal prison term of not less than five years and not more than 20 years. He also will be required to register as a sex offender when he completes his prison sentence.
This case was investigated by the Albuquerque office of the FBI, the BCSO, the NMOAG and the New Mexico ICAC Task Force.
The case was prosecuted by Assistant U.S. Attorney Shammara H. Henderson as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
The case also was brought as a part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 82 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the NMOAG. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Alaskan Physician Convicted of Distributing and Receiving Child PornographyRead the Press Release
A federal jury convicted an Alaskan physician of distributing and receiving child pornography, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Karen. L. Loeffler of the District of Alaska.
Greg Alan Salard, 54, of Wrangell, Alaska, was found guilty after a six-day trial before U.S. District Judge Timothy Burgess of the District of Alaska. Sentencing has been scheduled for Oct. 9, 2015, in Juneau, Alaska.
According to evidence presented at trial, in June 2014, during an FBI investigation concerning the trading of child pornography using peer-to-peer (P2P) software, investigators discovered that an Internet Protocol (IP) address linked to Salard was used to share files of known child pornography and that one of those files contained a video of child pornography. The evidence also showed that a laptop computer subsequently seized from Salard’s home contained the same P2P software used to share the video.
Testimony regarding a forensic examination of the laptop demonstrated that the computer contained a child pornography video as well as evidence of hundreds of other files with names indicative of child pornography; the jury reviewed the contents of 11 of those files. The testimony also showed that multiple searches had been run on the laptop for a term associated with child pornography, and that videos of child pornography had been viewed on the computer. Finally, the evidence introduced at trial revealed that a program designed to erase or “wipe” computer files had been used multiple times, including on the morning the search warrant was executed.
This case was investigated by the FBI, with assistance from the U.S. Forest Service, Petersburg, Alaska Police Department, Wrangell, Alaska Police Department and Juneau, Alaska, Police Department. The case is being prosecuted by Trial Attorney Leslie Williams Fisher of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Kyle Reardon of the District of Alaska.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Alaskan Physician Convicted of Internet Child Pornography CrimesRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that on July 28, 2015, a federal jury in Juneau, Alaska, convicted a physician from Wrangell, Alaska, of distributing and receiving child pornography.
Greg Alan Salard, 54, of Wrangell, Alaska, was found guilty after a six-day trial before U.S. District Judge Timothy Burgess. Sentencing has been scheduled for October 9, 2015, in Juneau. The maximum penalty for each count of conviction is not less than five years and up to 20 years imprisonment, a fine of $250,000, a five-year to life term of supervised release, and a $100 special assessment.
According to evidence presented at trial, starting in May 2014, an FBI investigation linked the defendant’s Internet Protocol (IP) address with the trading of child pornography through an online peer-to-peer (P2P) file-sharing network. Such P2P networks are commonly used by individuals seeking to acquire digital contraband, including child pornography, and copywrited movies, music, and books. Through their investigation of the network, law enforcement was able to connect to the defendant’s IP address on June 5, 2014, and download from the defendant’s computer a portion of a 4-minute video that showed an adult male molesting a four-year-old child. An additional observation of the defendant’s computer being on the network and making files of child pornography available to other users was made on October 1, 2014.
Based on the above information, law enforcement obtained a search warrant for the defendant’s residence. During surveillance of the property on the morning of October 15, 2014, law enforcement watched the defendant’s wife leave the property, leaving the defendant as the only occupant of the house. Shortly thereafter, the defendant started his P2P program and his IP address was observed offering a file of child pornography. This video showed sex scenes involving prepubescent children.
Police arrived at the defendant’s house approximately 10 minutes after his computer came online. After knocking on the door, it took approximately eight minutes for the defendant to answer. During the time that police waited for a response from the defendant, he was deleting files from his computer – including the file observed by police that morning, deleting his search history from his file-sharing program, and had started a program on his computer to erase files. This wiping software was 35 percent complete by the time police located the defendant’s computer and stopped it.
Pursuant to the terms of the search warrant, law enforcement seized the defendant’s laptop computer and searched it for evidence of child pornography. A computer forensic examiner was able to recover the deleted file that the defendant had offered to the P2P network on the morning of the search, as well as evidence that the defendant had played that video on his computer. Also located on the computer was evidence that the defendant had used multiple file-sharing programs to search for images of child pornography, had downloaded more than 500 files of child pornography between February 1, 2014, and October 15, 2014, had viewed those images through various media players located on his computer, and had deleted evidence of that illegal activity on at least four separate instances.
The defendant is currently charged in Caddo Parish, Louisiana with Aggravated Rape in violation of Louisiana Revised Statute (R.S.) 14:42. Specifically, he is alleged to have committed oral sexual intercourse with a victim under the age of 13. He is expected to be extradited to Louisiana to face that charge following his sentencing in the federal case.
This case was investigated by the FBI, with assistance from the U.S. Forest Service; Petersburg, Alaska Police Department; Wrangell, Alaska Police Department; and Juneau, Alaska Police Department. The case was prosecuted by Assistant U.S. Attorney Kyle Reardon and Trial Attorney Leslie Williams Fisher of the Criminal Division’s Child Exploitation and Obscenity Section.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Aggravated felon pleads guilty to illegally re-entering the United StatesRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced that a Honduran national pleaded guilty Tuesday to re-entering the country after having been previously deported for committing an aggravated felony.
Timoteo Gonzalez-Leiva, 42, of Honduras, pleaded guilty before U.S. Magistrate Judge Mark L. Hornsby to one count of illegal re-entry after being deported as an aggravated felon. His plea will become final when accepted by U.S. District Judge Donald E. Walter. According to evidence presented at the guilty plea, Shreveport Police arrested Gonzalez-Levia on October 26, 2014. On October 28, 2014, he was convicted of simple battery and sentenced to prison. On January 7, 2015, at the completion of his jail sentence, the Caddo Parish Sheriff notified U.S. Immigration and Customs Enforcement of his pending release. ICE agents found that the defendant had been deported and then unlawfully returned to the United States multiple times. He was arrested in March of 1998 for first degree robbery in Delaware and sentenced to two years in prison. After serving the prison sentence, he was deported as an aggravated felon to Honduras. He later unlawfully re-entered the United States again, was arrested and removed in April of 2004, and again in February of 2006.
Gonzalez-Leiva faces up to 20 years in prison, one to three years supervised release, a $250,000 fine and deportation after completion of his prison term. A sentencing date of November 2, 2015 was set.
United States Immigrations and Customs Enforcement-Immigration Enforcement and the Shreveport Police Department conducted the investigation. Assistant U.S. Attorney Robert W. Gillespie Jr. is prosecuting the case.
10 Springfield Area Residents Charged in 29-Defendant Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that 10 Springfield, Mo., area residents have been indicted by a federal grand jury for their roles in a now 29-defendant conspiracy to distribute methamphetamine in Greene, Polk, Christian, Jasper, Laclede and Webster counties.
Kenneth A. Hoffman, 45, David L. Miller, Jr., 39, Jeffrey L. Hatch, 46, Gregory L. “Pops” Jones, 50, David A. Floyd, 40, Jeffrey M. Gardner, 33, Corey A. Stienbarger, 26, and Brandon W. Malen, 25, all of Springfield, Heather L. Courtois, 31, of Republic, Mo., and Brandon A. House, 32, of Ash Grove, Mo., were charged in a 66-count second superseding indictment returned under seal by a federal grand jury in Springfield on Wednesday, July 22, 2015. This second superseding indictment replaces an April 2, 2015, federal indictment and adds these 10 defendants to the 19 defendants previously charged as well as additional charges.
Kenneth R. Friend, 44, Anthony J. Van Pelt, 36, Anthony M. Massoni, 41, Melody W. Carpenter, 32, Bonnie L. Amodio, 29, Donette C. Davis, 41, Justin D. Owens, 28, and Neil L. Manning, 47, all of Springfield; Kenna M. Harmon, 36, of Republic, Mo.; Anthony A. Hatfield, 31, of Nixa, Mo.; Joseph R. Allen, 41, of Half Way, Mo.; Tiffany A. Brawley, 26, of Phillipsburg, Mo.; Carlos Tapia, 40, of Lee’s Summit, Mo.; Eric M. McClanahan, 35, of Kansas City, Kan.; Cheryl D. Paluczak, 48, of St. Charles, Mo.; Nelson Olmeda, also known as “Diego,” 25, of Rosenberg, Texas; Robert A. Edson, 32, of Richmond, Texas; Robert Canales, 32, of Houston, Texas; and Clayton J. Mendes, 34, address unknown, were charged in the previous indictment. McClanahan and Carpenter have pleaded guilty and are therefore omitted from the second superseding indictment returned today.
The second superseding indictment alleges that all of the defendants participated in a conspiracy to distribute 500 grams or more of methamphetamine in Greene, Polk, Christian, Jasper, Laclede and Webster counties from June 1, 2013, to Nov. 29, 2014.
In addition to the drug-trafficking conspiracy, Harmon is charged in a money-laundering conspiracy. The indictment alleges that Harmon paid $324,185 in cash for the construction of a residence in Halfway, Mo., in 2014. All of those funds, the indictment says, were from the proceeds from the unlawful sale of methamphetamine. While building the residence, Harmon allegedly used the property to promote her continued sale of methamphetamine by storing methamphetamine at the residence, and allegedly asked Allen to provide security at the residence, in part, to protect the methamphetamine stored there.
Harmon is also charged with one count of distributing methamphetamine and one count of possessing methamphetamine with the intent to distribute. Harmon is also charged with one count of possessing a firearm in furtherance of a drug-trafficking crime and one count of being a felon in possession of a firearm. Harmon allegedly was in possession of a Jennings by Calwestco .22-caliber pistol.
Hatch is also charged with three counts of distributing methamphetamine and two counts of possessing methamphetamine with the intent to distribute. Hatch is also charged with one count of being a felon and an unlawful drug user in possession of a firearm and one count of possessing a firearm in furtherance of a drug-trafficking crime. Hatch allegedly was in possession of a Springfield Armory semi-automatic 9mm handgun.
Manning is also charged with five counts of possessing methamphetamine with the intent to distribute and with one count of being a felon in possession of firearms. Manning allegedly was in possession of a Taurus 9mm semi-automatic pistol, a Llama .40-caliber semi-automatic pistol and ammunition.
Massoni was also charged with two counts of being an unlawful drug user in possession of a firearm and ammunition. Massoni was allegedly in possession of a Taurus .45-caliber semi-automatic handgun and ammunition, and in possession of a Taurus .357-caliber handgun and ammunition.
Friend is also charged with seven counts of distributing methamphetamine and one count of possessing methamphetamine with the intent to distribute. Friend and Olmeda are charged together in one count of engaging in monetary transactions to promote unlawful activity. The indictment alleges that Friend paid Olmeda $20,000 for the purchase of methamphetamine; those funds allegedly were the proceeds of illegal methamphetamine trafficking.
Allen is also charged with one count of possessing methamphetamine with the intent to distribute and one count of possessing firearms in furtherance of a drug-trafficking crime. Allen allegedly was in possession of a Savage Arms .22-caliber rifle, a Mossberg 12-gauge shotgun, a Remington .22-caliber rifle, a Jennings by Bryco Arms .22-caliber pistol, two Glock .40-caliber pistols, a Rock Island Armory .45-caliber pistol and a Cobra .22-caliber derringer.
Hoffman is also charged with three counts of distributing methamphetamine and with five counts of possessing methamphetamine with the intent to distribute. Gardner is also charged with two counts of distributing methamphetamine. Jones is also charged with two counts of distributing methamphetamine. Miller is also charged with one count of distributing methamphetamine and two counts of possessing methamphetamine with the intent to distribute. Brawley is also charged with two counts of possessing methamphetamine with the intent to distribute. Owens is also charged with two counts of possessing methamphetamine with the intent to distribute.
Van Pelt is also charged with one count of possessing methamphetamine with the intent to distribute. Van Pelt and Stienbarger are charged together in one count of distributing methamphetamine. Van Pelt and Malen are charged together in one count of distributing methamphetamine. Malen is also charged with one count of making a building in Springfield available for the purpose of unlawfully storing, distributing and using methamphetamine. Malen is also charged with one count of being an unlawful drug user in possession of firearms. Malen allegedly was in possession of two Remington .30-06-caliber rifles, a Savage .22-caliber rifle, a Browning .22-caliber rifle, and ammunition.
House, Floyd, Amodio, Hatfield, Paluczak and Miller are each also charged with one count of possessing methamphetamine with the intent to distribute. Edson and Canales are also charged together in one count of possessing methamphetamine with the intent to distribute. Olmeda, Edson and Canales are charged together in one count of possessing methamphetamine with the intent to distribute.
Courtois was charged with one count of making a building in Republic available for the purpose of unlawfully storing, distributing and using methamphetamine.
The second superseding indictment also contains several forfeiture allegations, which would require various defendants to forfeit to the government any property used to commit the alleged offenses and any property derived from the proceeds of the alleged offenses, including Harmon’s residential property in Halfway, six vehicles (a Chevrolet Avalanche, a 2004 BMW-5 Series, a 2005 Mazda 6, a 2006 Hyundai Tiberon, a 1992 Harley-Davidson motorcycle, and a 2001 Harley-Davidson motorcycle), a total of $160,119 seized by law enforcement on various dates and at various locations, four rings and some bracelets and numerous firearms and ammunition.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorneys Randall Eggert and Gary Milligan. It was investigated by the Drug Enforcement Administration, IRS-Criminal Investigation, the Missouri State Highway Patrol, the Springfield, Mo., Police Department and Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
28 July 2015
Two Jefferson City Men Sentenced for Heroin ConspiracyRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that two Jefferson City, Mo., men were sentenced in federal court today for their roles in a conspiracy to distribute heroin.
Frank Collins, 45, and Tracy Davis, 47, both of Jefferson City, were sentenced in separate appearances before U.S. District Judge Brian C. Wimes. Collins was sentenced to 18 years and four months in federal prison without parole. Davis was sentenced to three years in federal prison without parole.
Collins and Davis both pleaded guilty to participating in a conspiracy to distribute heroin. Police utilized a confidential informant to make two purchases of heroin from Davis and additional confidential informants to make heroin purchases from Collins.
In one instance, when the confidential informant parked near Davis’s residence, Davis and a young child approached the vehicle. The confidential informant handed Davis $250 and Davis and the small child walked away. Davis then returned to the vehicle, opened the front passenger door, and handed the confidential informant two baggies of heroin.
Collins was the primary supplier for Davis, who then sold to users who would purchase heroin in half-gram quantities for approximately $100. Davis admitted he had been obtaining heroin from Collins every one to two days for the past six months prior to his arrest.
Collins admitted purchasing two to two-and-a-half ounces of heroin on four occasions over the past four months prior to his arrest, all from his source of supply in Chicago, for $85 per gram.
This case was prosecuted by Assistant U.S. Attorney Lauren E. Kummerer. It was investigated by the Drug Enforcement Administration, MUSTANG (the Mid-Missouri Unified Strike Team and Narcotics Group), the Jefferson City, Mo., Police Department, and the Columbia, Mo. Police Department.
Two California natives sentenced in multistate oxycodone trafficking operationRead the Press Release
WHEELING, WEST VIRGINIA – Two California natives were sentenced in federal court today for oxycodone trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Julia Joseph, 45, and Mario O. Garcia, 42 both of Van Nuys, California, participated in a drug trafficking operation in which large quantities of prescription painkillers were shipped across state lines from California into Marshall County, West Virginia for redistribution and sale. They each pled guilty to one count of Conspiracy to Possess with Intent to Distribute and to Distribute Oxycodone.”
Garcia was sentenced today to 37 months in prison. Joseph was sentenced today to probation for 3 years.
Assistant U.S. Attorney Robert McWilliams prosecuted Garcia and Assistant U.S. Attorney Randy Bernard prosecuted Joseph on behalf of the government. The Marshall County Drug and Violent Crime Task Force, a HIDTA-funded initiative, the Drug Enforcement Administration - Los Angeles Field Division Tactical Diversion Squad, and the West Virginia State Police investigated.
U.S. District Judge John Preston Bailey presided.
Thirty-Four Defendants Charged in White Plains Federal Court with Committing Narcotics and Firearms Offenses in Sullivan CountyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, James R. Farrell, the Sullivan County District Attorney, Diego Rodriguez, the Assistant Director-in-Charge of the New York Field Division of the Federal Bureau of Investigation (“FBI”), Raymond Parmer Jr., the Special Agent in Charge of the Homeland Security Investigations New York, Joseph A. D’Amico, the Superintendent of the New York State Police (“NYSP”), Michael A. Schiff, the Sullivan County Sheriff, Robert Mir, the Chief of the Village of Monticello Police Department, and Scott Kinne, the Chief of the Village of Liberty Police today announced the unsealing of nine Indictments charging a total of 34 defendants with committing various narcotics and firearms offenses in Sullivan County, New York.
Manhattan U.S. Attorney Preet Bharara said: “With the coordinated narcotics and firearms charges brought today, we seek to neutralize at least four different drug rings that allegedly have been selling massive amounts of heroin and crack cocaine for years. The devastating impact that this type of drug dealing can have on the small, rural communities like those in Sullivan County cannot be overstated. Heroin is back, with a vengeance, but so are we. The law enforcement effort today is the product of remarkable cooperation among federal, state and local agencies and I thank all of our partners.”
Sullivan County District Attorney James R. Farrell said: “Sullivan County, like the rest of our country, is not immune from the scourge of heroin and other dangerous narcotics and the threats they pose to our rural community. These drugs destroy lives, rip apart families and fuel a cycle of violence in our communities that threatens our safety and security. Today, in close collaboration and partnership with our federal law enforcement counterparts, we have disrupted, dismantled, and put out of business significant heroin and crack cocaine trafficking operations in Sullivan County. Over the last year, this joint investigation, involving local, state, county and federal assets, has concentrated on local dealers and local suppliers of heroin and crack cocaine. The successful partnership that has been forged will continue moving forward, unabated. Individuals who engage in these dangerous criminal activities, and import and distribute dangerous narcotics like crack cocaine and heroin, should take notice: all of our law enforcement resources are committed to protecting our community, targeting those who put our safety in danger and holding those people accountable and responsible for their criminal acts. ”
FBI Assistant Director-in-Charge Diego Rodriguez said: “Today’s charges describe alleged conspiracies to distribute crack and heroin in and around Monticello and other locations in Sullivan County. Infecting our neighborhoods with drugs peddled by criminals who arm their sales force with guns is a violent and dangerous combination. We’re here today to let the good people of Sullivan County know their streets are safer, their families are safer, and we’re one step closer to eliminating the drugs and violence that threaten the future and stability of their community.”
Homeland Security Investigations Special Agent in Charge Raymond Parmer Jr. said: “Today’s arrests help make the neighborhoods of Sullivan County a much safer place for its residents by taking violent drug dealers and other criminals off its streets. HSI will continue working with our law enforcement partners using every tool at our disposal to dismantle ruthless criminal organizations such as these.”
NYSP Superintendent Joseph A. D’Amico said: “The hard work and partnership between federal, state, county and local law enforcement are responsible for putting a stop to these drug operations. Thirty-four dangerous people are off the streets today, responsible for selling and distributing crack cocaine and heroin for money and firearms in and around Sullivan County. The State Police will continue to work closely with our law enforcement partners to make sure our neighborhoods are safe and the individuals who engage is this illegal activity are held accountable.”
Sullivan County Sheriff Michael A. Schiff said: “Today’s arrests are a clear indication of our resolve to address the drug epidemic that has besieged our community. Even though Sullivan County is the smallest population in the Southern District of New York, I would like to thank the U.S. Attorney’s Office and the Federal Bureau of Investigation for committing significant resources to our situation. We will continue to partner with federal, state and local agencies and use every tool at our disposal. All of the law enforcement agencies involved in this case should be commended for the outstanding job they have done.”
Village of Monticello Police Chief Robert Mir said: “I’m very appreciative and proud of the hard work of the law enforcement professionals that dedicated themselves to this operation. We have formed excellent working relationships with the U.S. Attorney’s Office, the FBI, Sullivan County District Attorney’s Office, New York State Police, Sullivan County Sheriff’s Office and the Liberty Police Department. The success of this mission would not have been possible had it not been for our collective resources. The arrests of these 34 individuals will make a significant dent in the criminal underworld of Sullivan County. The actions of those charged have been driving the violence and drug epidemic that have brought blight on our communities. Thanks to this concerted and continuing effort, we are creating a much safer place to live.”
Village of Liberty Police Chief Scott Kinne said: “This type of partnership and sharing of investigative resources is a necessity in modern day law enforcement, and the arrests of these individuals attests to this. I would like to thank all of the agencies that participated in this operation to help investigate, arrest, and prosecute these individuals who fueled crime and violence in our communities.”
As alleged in the Indictments unsealed today in White Plains federal court***
United States v. Errol Davis, et al., 15 Cr. 468
Between 2012 and 2015, ERROL DAVIS, a/k/a “MI,” 34, JAHMAL MCINTOSH, a/k/a “Blood,” 30, DARNELL SAUNDERS, a/k/a “Big D,” 36, CANDICE BROOKS, 30, ALFRED FRANKLIN, a/k/a “Junior,” 30, DEREK MOORER, a/k/a “D Moore,” 34, SCOTT MUSGRAVE, a/k/a “S,” 31, SAM REED, a/k/a “Elmo,” 25, JULIO RENTA, a/k/a “Tank,” 26, JAMES WILKES, a/k/a “Diamond,” 38, and SEAN YORK, a/k/a “Boogie,” 41, conspired to sell 280 grams or more of crack cocaine and 100 grams or more of heroin. The conspiracy was led, at different times, by DAVIS, MCINTOSH, and SAUNDERS. Members of the conspiracy distributed crack and heroin in and around Monticello and other locations in Sullivan County.
In October 2014, REED used and carried a firearm during and in relation to, and possessed a firearm in furtherance of, the narcotics conspiracy charged in the Indictment.
United States v. Damon Mitchell Sr., et al., 15 Cr. 463
Between 2013 and 2015, DAMON MITCHELL SR., a/k/a “Trip,” 40, LUIS GONZALEZ, 31, JULIO MARTINEZ, 36, KYRA MATAN, 33, PERNELL MOORE, a/k/a “Dog,” 48, HARMEEN NIX, a/k/a “Hollow,” 34, RAMON NUNEZ, a/k/a “Wellington,” 35, RONALD RIVERA, a/k/a “RJ,” 26, TYRELL SIMON, a/k/a “Shmeez,” 26, and GEORGE VEGA JR., a/k/a “Pito,” 29, conspired to sell one kilogram or more of heroin. MITCHELL, NIX, and NUNEZ served as sources of heroin supply to the conspiracy. The conspiracy was centered in Monticello, and members of the conspiracy distributed heroin in and around Sullivan County. MARTINEZ, MATAN, MOORE, RIVERA, SIMON, and VEGA distributed heroin in furtherance of the conspiracy. GONZALEZ helped NUNEZ transport and supply heroin to the conspiracy.
Between 2013 and 2015, RIVERA and SIMON each used and carried a firearm during and in relation to, and possessed a firearm in furtherance of, the narcotics conspiracy charged in the Indictment.
In the summer of 2014, MOORE possessed a firearm after having been convicted of a felony.
United States v. Darcy Copeland, et al., 15 Cr. 465
Between 2011 and 2015, DARCY COPELAND, a/k/a “Moey,” 33, JENILYN BOYCE, a/k/a “JL,” 31, PRISCILLA FRANKLIN, 33, and JERRELL CLARK, a/k/a “Rell,” 30, conspired to sell one kilogram or more of heroin. The conspiracy was based in Monticello and led by COPELAND. COPELAND distributed heroin to other drug dealers for resale, and on multiple occasions received firearms as payment for heroin. Since July 2014, COPELAND has been incarcerated on a state charge and has continued to maintain the drug distribution conspiracy while incarcerated. BOYCE distributed heroin for COPELAND and has helped him maintain his drug distribution operation while he is incarcerated. FRANKLIN and CLARK have also distributed heroin for COPELAND.
Between 2011 and 2015, COPELAND used and carried firearms during and in relation to, and possessed firearms in furtherance of, the narcotics conspiracy charged in the Indictment.
United States v. Frederick Gang, et al., 15 Cr. 471
Between 2007 and 2015, FREDERICK GANG, 55, APRIL WATSON, a/k/a “Nee Nee,” 30, and TYRONE HAGANS, a/k/a “Dirty T,” 38, conspired to sell 280 grams or more of crack cocaine. The conspiracy was based in Monticello and led by GANG. GANG supplied crack to other drug dealers for resale. WATSON maintained crack for GANG at her residence on Wood Avenue in Monticello and distributed crack in furtherance of the conspiracy. HAGANS distributed crack in furtherance of the conspiracy.
Between 2012 and 2013, WATSON used and carried firearms during and in relation to, and possessed firearms in furtherance of, the narcotics conspiracy charged in the Indictment.
United States v. Raheim Bolden, 15 Cr. 466
Between 2013 and 2015, RAHEIM BOLDEN, a/k/a “Red,” 32, conspired to sell 280 grams or more of crack cocaine.
United States v. Michael Hughes Jr., 15 Cr. 467
On January 10, 2015, MICHAEL HUGHES JR., 20, sold heroin. On February 6, 2015, HUGHES sold heroin and used and carried a firearm during and in relation to, and possessed a firearm in furtherance of, the sale of heroin.
United States v. Charles Gonzales, 15 Cr. 469
On May 5, 2015, CHARLES GONZALES, 39, possessed a firearm after having had three previous convictions for a violent felony or a serious drug offense.
United States v. Lamont McNeal and Gualberto Roman, Jr., 15 Cr. 470
On November 17, 2014, LAMONT MCNEAL, a/k/a “Ferl,” 42, possessed a firearm after having been convicted of a felony, and GUALBERTO ROMAN, JR., a/k/a “Bizzy Bert,” 31, possessed a firearm that had the manufacturer’s serial number obliterated.
United States v. Deon Morgan, 15 Cr. 464
On April 29, 2015, DEON MORGAN, 29, possessed a firearm after having been convicted of a felony.
* * *
32 of the 34 defendants are now in federal custody. The defendants will be presented in White Plains federal court today before U.S. Magistrate Judge Judith C. McCarthy and U.S. Magistrate Judge Paul E. Davison.
Charts containing the names of the defendants who were charged today, and the charges and maximum penalties they face, are attached. The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants would be determined by the respective judges.
Mr. Bharara praised the outstanding investigative work of the FBI, the New York State Police, the Sullivan County Sheriff’s Department, the Village of Monticello Police Department, the Village of Liberty Police Department, the Town of Fallsburg Police Department, the Department of Homeland Security, the United States Marshals Service, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Orange County Sheriff’s Office. Mr. Bharara also thanked the Sullivan County District Attorney’s Office for its ongoing assistance in the case.
These cases are being handled by the Office’s White Plains Division. Assistant United States Attorneys Michael Gerber, Max Nicholas, Won Shin, and Jennifer Beidel are in charge of the prosecutions.
The charges contained in the Indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
###
United States v. Errol Davis, et al., 15 Cr. 468
CHARGE(S)
DEFENDANT(S)
MAXIMUM PENALTIES
Narcotics conspiracy
(Conspiracy to distribute and possess with intent to distribute 280 grams or more of crack cocaine and 100 grams or more of heroin.)
ERROL DAVIS, a/k/a “MI,”
JAHMAL MCINTOSH, a/k/a “Blood,”
DARNELL SAUNDERS, a/k/a “Big D,”
CANDICE BROOKS, ALFRED FRANKLIN, a/k/a “Junior,”
DEREK MOORER, a/k/a “D Moore,”
SCOTT MUSGRAVE, a/k/a “S,”
SAM REED, a/k/a “Elmo,”
JULIO RENTA, a/k/a “Tank,”
JAMES WILKES, a/k/a “Diamond,” and
SEAN YORK, a/k/a “Boogie”Life in prison
Mandatory minimum: 10 years in prison
Possession of a firearm in furtherance of a drug trafficking crime
SAM REED, a/k/a “Elmo”
Life in prison
Mandatory minimum: five years in prison, to be imposed consecutively to any other sentence
United States v. Damon Mitchell Sr., et al., 15 Cr. 463
CHARGE(S)
DEFENDANT(S)
MAXIMUM PENALTIES
Narcotics conspiracy
(Conspiracy to distribute and possess with intent to distribute one kilogram or more of heroin.)
DAMON MITCHELL SR., a/k/a “Trip,”
LUIS GONZALEZ, JULIO MARTINEZ, KYRA MATAN, PERNELL MOORE, a/k/a “Dog,”
HARMEEN NIX a/k/a “Hollow,”
RAMON NUNEZ, a/k/a “Wellington,”
RONALD RIVERA, a/k/a “RJ,”
TYRELL SIMON, a/k/a “Shmeez,” and
GEORGE VEGA JR., a/k/a “Pito”Life in prison
Mandatory minimum: 10 years in prison
Possession of a firearm in furtherance of a drug trafficking crime
RONALD RIVERA, a/k/a “RJ,” and
TYRELL SIMON, a/k/a “Shmeez”Life in prison
Mandatory minimum: five years in prison, to be imposed consecutively to any other sentence
Possession of a firearm after having been convicted of a felony
PERNELL MOORE, a/k/a “Dog”
10 years in prison
United States v. Darcy Copeland, et al., 15 Cr. 465
CHARGE(S)
DEFENDANT(S)
MAXIMUM PENALTIES
Narcotics conspiracy
(Conspiracy to distribute and possess with intent to distribute one kilogram or more of heroin.)
DARCY COPELAND, a/k/a “Moey,”
JENILYN BOYCE, a/k/a “JL,”
PRISCILLA FRANKLIN, and
JERRELL CLARK, a/k/a “Rell,”Life in prison
Mandatory minimum: 10 years in prison
Possession of a firearm in furtherance of a drug trafficking crime
DARCY COPELAND, a/k/a “Moey”
Life in prison
Mandatory minimum: five years in prison, to be imposed consecutively to any other sentence
United States v. Frederick Gang, et al., 15 Cr. 471
CHARGE(S)
DEFENDANT(S)
MAXIMUM PENALTIES
Narcotics conspiracy
(Conspiracy to distribute and possess with intent to distribute 280 grams or more of crack cocaine.)
FREDERICK GANG, APRIL WATSON, a/k/a “Nee Nee,”
TYRONE HAGANS, a/k/a “Dirty T,” and
RAHEIM BOLDEN, a/k/a “Red”Life in prison
Mandatory minimum: 10 years in prison
Possession of a firearm in furtherance of a drug trafficking crime
APRIL WATSON, a/k/a “Nee Nee”
Life in prison
Mandatory minimum: five years in prison, to be imposed consecutively to any other sentence
United States v. Raheim Bolden, 15 Cr. 466
CHARGE(S)
DEFENDANT(S)
MAXIMUM PENALTIES
Narcotics conspiracy
(Conspiracy to distribute and possess with intent to distribute 280 grams or more of crack cocaine.)
RAHEIM BOLDEN, a/k/a “Red”
Life in prison
Mandatory minimum: 10 years in prison
United States v. Michael Hughes Jr., 15 Cr. 467
CHARGE(S)
DEFENDANT(S)
MAXIMUM PENALTIES
Distribution and possession with intent to distribute heroin
MICHAEL HUGHES JR. (two counts)
20 years in prison
Possession of a firearm in furtherance of a drug trafficking crime
MICHAEL HUGHES JR.
Life in prison
Mandatory minimum: five years in prison, to be imposed consecutively to any other sentence
United States v. Charles Gonzales, 15 Cr. 469
CHARGE(S)
DEFENDANT(S)
MAXIMUM PENALTIES
Possession of a firearm after having had three previous convictions for a violent felony or a serious drug offense
CHARLES GONZALES
Life in prison
Mandatory minimum: 15 years in prison
United States v. Lamont McNeal and Gualberto Roman, Jr., 15 Cr. 470
CHARGE(S)
DEFENDANT(S)
MAXIMUM PENALTIES
Possession of a firearm after having been convicted of a felony
LAMONT MCNEAL, a/k/a “Ferl”
10 years in prison
Possession of a firearm that had the manufacturer’s serial number obliterated
GUALBERTO ROMAN, JR., a/k/a “Bizzy Bert”
5 years in prison
United States v. Deon Morgan, 15 Cr. 464
CHARGE(S)
DEFENDANT(S)
MAXIMUM PENALTIES
Possession of a firearm after having been convicted of a felony
DEON MORGAN
10 years in prison
***As the introductory phrase signifies, the entirety of the text of the Indictments and the descriptions of the Indictments set forth below constitute only allegations, and every fact described should be treated as an allegation.Texas Woman Sentenced for Federal Methamphetamine Trafficking Conviction in New MexicoRead the Press Release
ALBUQUERQUE – Natali Arvilla Castro, 28, of Horizon City, Texas, was sentenced this morning in federal court in Las Cruces, N.M., to 45 months in prison followed by three years of supervised release for her methamphetamine trafficking conviction.
Castro and Travis Lavar Clark, 36, of Raleigh, N.C., were arrested on May 5, 2014, on a criminal complaint charging them with possession of methamphetamine with intent to distribute. According to the complaint, on Nov. 12, 2013, FBI agents encountered Clark and Castro at a hotel in Doña Ana County, N.M., after receiving information that the couple was transporting methamphetamine from El Paso, Texas to Las Cruces, N.M.
On Sept. 23, 2014, Castro pled guilty to a felony information charging her with possession of methamphetamine with intent to distribute. In entering her guilty plea, Castro admitted that on Nov. 12, 2013, Clark and she possessed approximately 757.34 grams of methamphetamine with intent to distribute. Castro further admitted that the methamphetamine was seized by law enforcement from a suitcase in the vehicle she was driving. Castro acknowledged that the pair were being paid to take the methamphetamine from El Paso to open up a “store” in Las Cruces where they intended to sell methamphetamine.
Clark was indicted in Feb. 2014, and charged with possession of methamphetamine with intent to distribute. Clark entered a guilty plea on June 10, 2014, to an indictment charging him with possession of methamphetamine with intent to distribute and acknowledged possessing 757.34 grams of pure methamphetamine. Clark was sentenced on April 28, 2015, to 51 months in prison followed by three years of supervised release.
This case was investigated by the Las Cruces office of the FBI and the New Mexico HIDTA Regional Interagency Drug Task Force (RIDTF)/Metro Narcotics Task Force. Assistant U.S. Attorney Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case.
The HIDTA Metro Narcotics Task Force is comprised of officers from the Las Cruces Police Department and the Doña Ana County Sheriff’s Office. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Texas Man Sentenced to More Than 10 Years for Methamphetamine TraffickingRead the Press Release
Orlando, Florida – U.S. District Judge Gregory A. Presnell has sentenced Alvaro De La Torre-Valdez (42, Dayton, TX) to 10 years and 5 months in federal prison for conspiracy to distribute methamphetamine. He pleaded guilty on April 3, 2015.
According to court documents, Torre-Valdez was a member of a drug trafficking organization responsible for transporting methamphetamine from Texas to Central Florida. In October 2014, he arranged to hide three kilograms of crystal methamphetamine in the spare tire of a car and transport it from his home in Texas to Florida. A trooper with the Florida Highway Patrol stopped the car near Ocala. During the traffic stop, a trained drug detection dog alerted on the car and approximately three kilograms of crystal methamphetamine were recovered from inside the spare tire of the car.
This case was investigated by Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney Bruce S. Ambrose.
St. Ann Woman Pled Guilty in A Tax Scheme to Obtain “Free Money”Read the Press Release
Ebonyi Blakely, 28, from St. Ann, Missouri, pled guilty to an indictment that charged her with conspiracy to obstruct or impair the Internal Revenue Service in the lawful assessment and collection of income taxes and distribution of tax refunds, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Sentencing is set for November 6, 2015.
Blakely admitted that she conspired with and assisted a dishonest tax preparer, Tanya Nichols, who filed false tax returns to claim inflated refundable tax credits for low-income tax filers such as the earned income tax credit (EIC) and the child tax credit, which were refunded to the filer. Blakely
recruited individuals to have their returns prepared by Nichols. Blakely admitted that she had her own federal income tax return prepared by the dishonest tax preparer. The false information contained in the income tax returns prevented the IRS from making an accurate ascertainment, computation, and assessment of tax liabilities. It also prevented the IRS from making a correct distribution of income tax refunds. The false tax returns generated a larger tax refund than the filer was entitled to receive. Tanya Nichols was sentenced on June 12, 2015, to a prison sentence of 57 months.
Conspiracy is punishable by not more than 5 years in prison, a $250,000 fine, and not more than 3 years supervised release.
The investigation was conducted by agents from the Internal Revenue Service / Criminal Investigations. The case is being prosecuted by Assistant United States Attorney Norman R. Smith.
Rio Rancho Man to be Transferred from Indiana to New Mexico to Face Federal Charges Arising from the Alleged Kidnapping and Transporting of a Minor in Interstate Commerce to Engage in Sexual ActivityRead the Press Release
ALBUQUERQUE – A U.S. Magistrate Judge of the U.S. District Court for the Southern District of Indiana has ordered the transfer of Joe Medina, 37, of Rio Rancho, N.M., from Indiana to New Mexico to face a criminal complaint charging him with kidnapping and transporting a minor in interstate commerce for purposes of engaging in sexual activity. The order was announced by U.S. Attorney Damon P. Martinez, 13th Judicial District Attorney Lemuel L. Martinez, Special Agent in Charge Carol K.O. Lee of the FBI’s Albuquerque Division and Chief Michael Geier of the Rio Rancho Police Department (RRPD).
Medina was arrested in Indianapolis, Ind., on July 20, 2015, on a federal arrest warrant issued based on a criminal complaint filed by the FBI in the U.S. District Court for the District of New Mexico. The criminal complaint charges Medina with kidnapping and transporting a minor in interstate commerce for the purpose of engaging in sexual activity.
According to the criminal complaint, on July 9, 2015, the victim’s mother filed a missing person’s report to the RRPD asserting that the victim had been taken from their home and was missing. The complaint alleges that after the mother learned that Medina and the victim had been communicating with each other without her knowledge, she forced the victim to terminate communications with Medina. The mother reported that on July 7, 2015, Medina allegedly called the victim and threatened to kidnap her and kill her mother if he was denied contact with the victim.
Thereafter, the RRPD’s investigation revealed that Medina allegedly took the victim to Denver, Colo., where they boarded a bus. On July 12, 2015, Medina was arrested on a New Mexico state warrant when Medina and the victim were found on a bus that had stopped in Indianapolis. The criminal complaint alleges that the victim told the Indiana State Police that Medina had taken her against her will.
During a July 13, 2015, interview with the FBI, the victim reiterated that Medina had taken her from outside of her home against her will on July 9, 2015. The victim also told the FBI that Medina took her from Albuquerque to Denver where they abandoned Medina’s car and boarded a bus. After departing Denver, Medina and the victim allegedly traveled on a series of buses until they were stopped in Indianapolis.
If convicted on the kidnapping charge, Medina faces a statutory maximum penalty of life in prison. If convicted for transporting a minor in interstate commerce to engage in sexual activity, Medina faces a mandatory minimum of ten years and a maximum of life in prison. Charges in criminal complaints are merely accusations and criminal defendants are presumed innocent unless found guilty beyond a reasonable doubt.
The U.S. Marshals Service is in the process of transporting Medina to New Mexico.
This case was investigated by the Albuquerque office of the FBI and the Rio Rancho Police Department, Corrales Police Department, and Denver Police Department with assistance from the 13th Judicial District Attorney’s Office, the U.S. Marshals Service, the Indiana State Police and the FBI in Indianapolis. Assistant U.S. Attorney Sarah Mease is prosecuting the case.
The case is brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Republic Man Sentenced for Distributing Tons of MarijuanaRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Republic, Mo., man was sentenced in federal court today for his role in a conspiracy that distributed thousands of pounds of marijuana in southwest Missouri.
Sean Bond, 39, of Republic, Mo., was sentenced by U.S. District Judge Stephen R. Bough to 12 years in federal prison without parole.
On Oct. 16, 2014, Bond pleaded guilty to participating in a conspiracy to distribute marijuana in Greene County, Mo., and elsewhere from April 1, 2010, to June 19, 2013. Co-defendants Brian D. Hanson, 30, and Brenda Swearingin, 57, both of Springfield, and Jorge Torres, Jr., 31, of Battlefield, Mo., have also pleaded guilty to their roles in the drug-trafficking conspiracy.
Bond arranged for Hanson and others to pick up marijuana from individuals outside of Springfield, then transported the marijuana to Springfield for Bond to distribute to other persons. Bond and Hanson also traveled together to Texas to obtain marijuana that had been smuggled into the United States from Mexico.
Hanson, who was sentenced today to one year and one day in prison, admitted that he was responsible for transporting between 1,000 kilograms and 3,000 kilograms of marijuana into southwest Missouri.
Swearingin, who was sentenced today to five years of probation, also pleaded guilty to illegally possessing a firearm in furtherance of a drug-trafficking crime. Swearingin admitted that she purchased pound amounts of marijuana from Bond each month for about two years and distributed it to others. She received approximately 10.872 kilograms of marijuana from Bond during her involvement in the conspiracy. When law enforcement officers executed a search warrant at Swearingin’s residence, they discovered a Hefty Freezer bag that contained approximately 173 grams of marijuana under a mattress in the guest bedroom. They also found a loaded Taurus .22-caliber handgun in Swearingin’s purse.
Torres, who is scheduled to be sentenced on Wednesday, July 28, 2015, admitted that he distributed approximately 120 pounds (54.36 kilograms) of marijuana to Jordan Hitchcock, 22, of Springfield. Hitchcock has pleaded guilty in a separate but related case and awaits sentencing. Torres obtained the marijuana from Bond. Hitchcock paid Torres $650 to $750 per pound of marijuana. Torres made approximately $50 per pound of marijuana sold.
In addition to the drug-trafficking conspiracy, Bond and Hanson each pleaded guilty to participating in a conspiracy to launder the proceeds of marijuana sales. For example, Hanson gave Bond a 2002 BMW 745i and a 1969 Chevrolet Chevelle to pay a drug debt. Hanson purchased a 2003 Ford Crown Victoria at an auto auction, using proceeds from the sale of marijuana. Hanson then used this vehicle to transport marijuana from Houston and Kansas City, Mo., to Springfield.
Bond also admitted that he purchased a Wellcraft 3200 Martinique boat (which he registered in his father’s name), in part with drug proceeds, and a 2007 Cadillac Escalade that he used to distribute marijuana to customers in the Springfield area. Bond also used drug proceeds to purchase a 2002 BMW 725i, a 2002 Firebird pro-mod race car, a 1968 Chevrolet Camaro, three go karts, a 2006 Haulmark trailer and a 2004 Ford F350. That property has been seized by law enforcement officers and is subject to be forfeited to the government.
This case is being prosecuted by Assistant U.S. Attorney Randall D. Eggert. It was investigated by the Drug Enforcement Administration, IRS-Criminal Investigation, the Missouri State Highway Patrol, the Springfield, Mo., Police Department and COMET (the Combined Ozark Multi-jurisdictional Enforcement Team).
Removed Alien Charged with Illegally Re-entering U.S.Read the Press Release
PITTSBURGH - A resident of Mexico, has been indicted by a federal grand jury in Pittsburgh on a charge of reentry of removed alien, United States Attorney David J. Hickton announced today.
The one-count indictment named Alberto Tejada-Casas, 34, of Mexico as the sole defendant.
According to the indictment, the defendant, who was previously removed from the United States on Oct. 25, 2007 and April 27, 2013, was found in Mount Lebanon, Pa., on June 26, 2015 without having applied for or received permission to reenter the United States from the Secretary of the Department of Homeland Security.
The law provides for a maximum total sentence of 10 years in prison, three years supervised release, and a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Leo M. Dillon is prosecuting this case on behalf of the government.
The Department of Homeland Security conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Patricia Merz and Christopher McGuigan Sentenced for Embezzling from Mother's Bennington EstateRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Patricia Merz, 58, of Niskayuna, New York, and her brother, Christopher McGuigan, 53, of Rutland, have been sentenced in United States District Court in Burlington following their convictions on federal fraud and conspiracy charges. Today, Chief U.S. District Judge Christina Reiss sentenced Merz to time served, to be followed by three years of supervised release. As a condition of supervised release, Merz must spend the next six months in home confinement. This past January, Judge Reiss sentenced McGuigan to time served, followed by three years of supervised release. The court ordered Merz to pay restitution totaling about $52,000 and McGuigan to pay about $40,000. .
In 2014, a federal grand jury in Rutland returned a superseding indictment charging the defendants with conspiracy, wire fraud, interstate transportation of stolen money and forgery. According to the indictment, the defendants' mother, Annelise McGuigan, died in Bennington in 2009. She left no will. In late 2009, the Bennington probate court appointed Merz and McGuigan as co-administrators of their mother's estate. As administrators, they had a legal duty to prepare an inventory of estate assets, pay the estate's debts and render an accounting to the court.
According to the indictment, Annelise McGuigan owned a house in Rupert at the time of her death. With the court's permission, Merz and McGuigan sold the house in 2010. The sale netted the estate about $180,000. Although Merz and McGuigan had received claims against the estate totaling more than $88,000 -- debts incurred for funeral expenses, property maintenance, credit card expenses and nursing home and medical care -- Merz and McGuigan never paid any of those obligations. Instead, they used virtually all of the estate funds to benefit themselves, spending the entire $180,000 within about one year. Merz withdrew about $50,000 from the estate account by forging McGuigan's signatures on numerous banking withdrawal slips.
In October 2014, following a three-day trial, a federal jury convicted Merz on all four counts. McGuigan, who cooperated with the investigation, pled guilty to conspiracy.
This case was investigated by the Federal Bureau of Investigation.
Merz is represented by Federal Public Defender Michael Desautels. McGuigan is represented by Robert Behrens. The prosecutors are Assistant U.S. Attorneys Gregory Waples and Nikolas Kerest.
Owner of Illegal Online Gambling Website Sentenced to 18 Months in PrisonRead the Press Release
NEWARK, N.J. – A website owner involved in an illegal sports betting conspiracy with the Genovese Crime Family of La Cosa Nostra was sentenced today to 18 months in prison, U.S. Attorney Paul J. Fishman announced.
Joseph Graziano, 78, of Springfield, New Jersey, previously pleaded guilty before District Judge Claire C. Cecchi to an information charging him with one count of racketeering conspiracy. Judge Cecchi imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Graziano was the principal owner of Beteagle.com, a website located in Costa Rica and used to facilitate illegal online sports betting. Dominick J. Barone, 45, of Springfield, New Jersey, worked with Graziano in carrying out the daily activities of the website and both men conspired with the Genovese Crime Family of La Cosa Nostra in the operation of Beteagle.
Joseph Lascala, 83, of Monroe, New Jersey, was the alleged “capo” and a made member of the Genovese family operating in northern New Jersey. He directed the criminal activities of a smaller group of associates, referred to as a crew, whose activities included illegal gambling and the collection of unlawful debt.
As part of the conspiracy, associates of the crew were given access to Beteagle and were considered “agents.” Before the advent of computerized betting, these agents would have been referred to as “bookmakers” or “bookies.” The agents had the ability to track the “sub-agents,” under them and the wagers placed by their bettors. The agent or sub-agent maintained a group of bettors (the “package”) and were responsible for those bettors.
To place bets online, the agent or sub-agent issued the bettor a username and password to access Beteagle. This access was not given online and no money or credits were made or transferred through the website. Associates of the crew paid out winnings or collected losses in person. If a bettor failed to pay his gambling losses, the crew used their La Cosa Nostra status and threats of violence to collect on these debts.
In addition to the prison term, Judge Cecchi ordered Graziano to serve three years of supervised release and pay a $16,000 fine. As part of his plea agreement, Graziano has forfeited $1 million to the United States.
Barone previously pleaded guilty to his role in the scheme and was sentenced to 18 months in prison on June 16, 2015. Charges against Lascala are still pending. The charges and allegations against him are merely accusations and he is presumed innocent unless and until proven guilty.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark; the Bayonne Police Department, Special Investigations Unit, under the direction of Chief Drew Niekrasz; IRS-Criminal Investigation under the direction of Special Agent in Charge Jonathan D. Larsen; the N.J. State Police, under the direction of Superintendent Rick Fuentes; and the Monmouth County Prosecutor’s Office, under the direction of Acting Prosecutor Christopher Gramiccioni, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Anthony Moscato of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Lawrence S. Lustberg Esq., Newark
New York Man Sentenced for Million Dollar Mortgage Fraud SchemeRead the Press Release
BOSTON – A Skaneateles, N.Y. man was sentenced today in connection with a mortgage fraud scheme which resulted in losses of more than $1 million to lenders.
Michael St. Claire, 36, was sentenced by U.S. District Judge William G. Young to six months in prison, an additional four months of home confinement, and ordered to pay $1,257,945 in restitution. St. Claire previously pleaded guilty to conspiracy to commit wire fraud.
In early to mid-2007, St. Claire and co-defendant Monique Boucher recruited so-called investors to purchase 12 condominium units in a South Boston building that St. Claire had purchased. The recruits were told they would not have to bring any money to the table, even though the HUD-1 Settlement Statements falsely stated that each of them paid substantial down payments. Instead, those down payments came from funds supposedly due to St. Claire’s real estate company for liens that in fact, did not exist. Each recruit also was promised, and received, a significant payment after closing—in the tens of thousands of dollars—that they could use however they saw fit. These fees were paid to the buyers by both St. Claire and Boucher. Together, St. Claire and Boucher pocketed about $975,000 in profits from the loan proceeds. Eleven of the twelve properties went into foreclosure and sold at significant loss to the lenders.
Boucher, 51, of Florida, also pleaded guilty to conspiracy to commit wire fraud. In November 2014, she was sentenced to 10 months in prison and ordered to pay restitution.
United States Attorney Carmen M. Ortiz; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Sandra S. Bower of Ortiz’s Economic Crimes Unit.
New York Man Admits Supplying Falsely Remarked Computer Chips Used in U.S. Military HelicoptersRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JEFFREY KRANTZ, 50, of New York, N.Y., waived his right to indictment and pleaded guilty today in Hartford federal court to supplying customers with falsely remarked microprocessor chips, many of which were used in U.S. Military and commercial helicopters.
“The distribution of unapproved microprocessor chips and other electronic components for use by the U.S. Military poses a serious threat to the safety of the men and women of our armed services,” said U.S. Attorney Daly. “Individuals who choose profit over public health and safety will be prosecuted. We thank the Defense Criminal Investigative Service and the U.S. Department of Transportation, Office of Inspector General, for their excellent work on this complex investigation.”
“The charge today is demonstrative of the continued dedication of the Defense Criminal Investigative Service (DCIS) and our fellow law enforcement partners to protect the integrity of the Department of Defense’s supply chain,” said Craig W. Rupert, Special Agent in Charge, DCIS, Northeast Field Office. “Distributors who opt for financial gain by introducing inferior products into mission critical equipment create an environment ripe for product failures. Such disregard puts the warfighter at an unnecessary risk, ultimately impacting the mission readiness of our military that the nation depends on. DCIS will continue to engage with prosecutors to address all who attempt to disrupt the reliability of our military’s critical infrastructure.”
“The actions taken today demonstrate the commitment of the Department of Transportation Inspector General's Office to preventing and detecting fraud in the aerospace manufacturing industry,” said Todd Damiani, regional Special Agent-in-Charge of the U.S. Department of Transportation Office of Inspector General. “Working with our law enforcement and prosecutorial colleagues, we will continue our efforts to uncover suspect unapproved parts, prevent their use, and punish those who seek to compromise the integrity of DOT’s safety programs.”
According to court documents and statements made in court, KRANTZ is the CEO and an owner of Harry Krantz, LLC, a New York-based company that bought and sold, among other things, obsolete electronic parts for use by the U.S. Military and commercial buyers. In 2005, KRANTZ entered into a business relationship with Jeffrey Warga, the president and owner of Rhode Island-based Bay Components, LLC, to sell military microprocessor chips to Bay Components, which would in turn sell them to a Connecticut company. KRANTZ knew that the Connecticut company wanted new and original chips, not falsely remarked chips.
Between 2005 and 2008, KRANTZ purchased and sold, and caused to be purchased and sold, over a thousand chips to Bay Components, which, in turn sold them to the Connecticut company. The chips were marked with certain information, including a certain manufacturer’s name and trademark, a date code, and a military part number. In approximately December 2005, the first shipments of about 330 chips that KRANTZ had sold to Bay Components were rejected by the Connecticut company for being the wrong part because the chip contained the wrong die inside. In 2006, KRANTZ replaced those chips with at least some of the replacement chips bearing the date code 9832. Between 2006 and 2008, KRANTZ sold and caused to be sold at least 900 chips with date code 9832 to Bay Components, the majority of which were sold to the Connecticut company. KRANTZ knew that the chips had originated from a parts supplier in China, and there was a high probability that the chips were falsely remarked not the original chips of the certain manufacturer as represented by the markings on the chip. He also avoided engaging in common practices in the industry, including those which Harry Krantz LLC routinely engaged in for other military parts, to avoid confirming that the chips were likely remarked.
The investigation revealed that many of the chips were used in the assembly of U.S. Military and commercial helicopters. The chips have been examined and determined not to be the root cause of any mechanical problems experienced by the helicopters to date.
KRANTZ pleaded guilty to one count of wire fraud, a charge that carries a maximum term of imprisonment of 20 years and a fine of up to approximately $800,000. He is scheduled to be sentenced on November 2, 2015.
KRANTZ has agreed to pay restitution in the amount of $402,650. He also has agreed not to be directly or indirectly involved in the buying or selling of electronic parts, for a period of up to two years, and to give up all control either directly or indirectly over Harry Krantz LLC, and all beneficial and/or financial interest, including ownership interest, in Harry Krantz, LLC and will not reacquire such an interest.
On December 12, 2014, Warga pleaded guilty to one count of conspiracy to commit wire fraud. He awaits sentencing.
This matter is being investigated by the Defense Criminal Investigative Service and the U.S. Department of Transportation, Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Felice Duffy and Special Assistant U.S. Attorney Carol Sipperly.
New Port Richey Man Convicted of Child Exploitation OffensesRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury has found Mark Joseph Unrein (62, New Port Richey) guilty of possessing child pornography and using a cell phone and computer to attempt to induce a person he believed was a minor to engage in illegal sexual activity. He faces a maximum penalty of life in federal prison. The sentencing hearing has been scheduled for October 23, 2015.
Unrein was originally indicted on June 26, 2014. On January 14, 2015, a superseding indictment was returned that added the possession of child pornography count.
According to evidence presented at trial, the investigation of Unrein began during a Citrus County Sheriff’s Office child exploitation operation seeking to identify individuals who posed a risk to children in the community. On May 8, 2014, an undercover officer posted a personal ad online posing as a mother who would allow her “12-year-old daughter” to have a sex with a stranger. Unrein responded to the ad on the same day, and began communicating with the undercover officer. Through emails and phone calls, Unrein made arrangements to meet to have sex with the “child.” The next day, Unrein drove to Inverness, where he believed the “mother” and “child” resided. He was subsequently arrested.
After the arrest, agents conducted a search of Unrein’s residence and seized the computer that he had used to communicate with the undercover officer. A forensic examination of the computer revealed numerous images of young children engaged in sexually explicit conduct.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Amanda C. Kaiser.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Myrtle Beach Man Enters Guilty Plea to Wire FraudRead the Press Release
Contact Person: John C. Potterfield, (803) 929-3000
Florence, South Carolina ---- United States Attorney Bill Nettles stated today that Shayne Harrison Smith, age 47, of Myrtle Beach, South Carolina has entered a guilty plea in federal court in Florence, to Wire Fraud, a violation of 18 U.S.C. § 1343. United States District Judge R. Bryan Harwell of Florence accepted the guilty plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Information presented at the change of plea hearing established that Mr. Smith was involved in a "mortgage rescue scheme." He convinced distressed home owners that he could negotiate better terms of repayment with their lenders. Mr. Smith required the victims to pay him fees which he used for his own benefit. He encouraged some of the home owners to cease communicating with their lenders and stop making payments to the lenders, because he would take care of everything. Mr. Smith never successfully renegotiated any of the mortgages.
Mr. Nettles stated the maximum penalty for Wire Fraud is imprisonment for 30 years and/or a fine of $1,000,000.
The case was investigated by agents of the F.B.I. Assistant United States Attorney John C. Potterfield of the Florence is prosecuting the case.
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Multi-agency Investigation Leads to Charges Against India Internet-Based Rx Drug SupplierRead the Press Release
PITTSBURGH - A resident of Mumbai, India, has been indicted by a federal grand jury in Pittsburgh on charges of mail fraud, conspiracy to misbrand and smuggle drugs, conspiracy to import Schedule IV controlled substances and money laundering, United States Attorney David J. Hickton announced today.
The 14-count indictment named Ramesh Buchirajam Akkela, a/k/a Ramesh Bhai, 44, of Mumbai, India, as the sole defendant.
According to the indictment, Akkela, an Indian Internet-based supplier of prescription drugs - without prescriptions - to U.S. consumers, was charged with 10 counts of mail fraud, conspiracy to misbrand and smuggle drugs, conspiracy to import Schedule IV controlled substances and two counts of money laundering.
Except for the conspiracy counts, each of which is punishable by five years’ imprisonment, all the other counts have a maximum penalty of 20 years. Each money laundering count carries a maximum $500,000 fine, while $250,000 is the maximum fine for the remaining counts. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Leo M. Dillon is prosecuting this case on behalf of the government.
The Food and Drug Administration, Office of Criminal Investigations, Homeland Security Investigations, U.S. Postal Inspection Service, Pennsylvania State Police and the Internal Revenue Service, Criminal Investigation conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Monroe County Resident Charged with Attempting to Use Weapon of Mass DestructionRead the Press Release
A Monroe County resident was charged with attempting to use a weapon of mass destruction, an explosive device.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, John P. Carlin, Assistant Attorney General for National Security, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and members of the South Florida Joint Terrorism Task Force (JTTF), made the announcement.
Harlem Suarez, a/k/a “Almlak Benitez,” 23, of Key West, Florida, was charged by a criminal complaint with knowingly attempting to use a weapon of mass destruction against a person or property within the United States, in violation of Title 18, United States Code, Section 2332a(a)(2), punishable by up to life in prison.
According to the allegations contained in the complaint, in April 2015, Suarez came to the attention of the FBI due to Facebook postings which contained extremist rhetoric and promoted the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization (FTO).
The complaint further alleges that Suarez told an FBI confidential human source (CHS) that he wanted to make a “timer bomb.” Suarez purchased components for this device, which was to contain galvanized nails, be concealed in a backpack, and be remotely detonated by a cellular telephone. Suarez intended to bury the device at a public beach in Key West and then detonate it.
On July 27, 2015, Suarez took possession of an inert explosive device and was arrested.
“The top priority of the Department of Justice is to protect the security of the American people. The U.S. Attorney’s Office, in collaboration with the FBI, works tirelessly to advance this mission by continuing to thwart home-grown acts of terrorism,” stated U.S. Attorney Ferrer.
“According to the complaint, Harlem Suarez, a self-professed ISIL adherent, knowingly attempted to use a weapon of mass destruction - a backpack bomb - in the United States,” said Assistant Attorney General Carlin. “Stopping attacks on our homeland by those inspired or directed by designated foreign terrorist organizations is the highest priority of the National Security Division.”
“There is no room for failure when it comes to investigating the potential use of a weapon of mass destruction,” said George L. Piro, Special Agent in Charge, FBI Miami. “The FBI and our local, state and federal partners work around the clock to prevent such catastrophic weapons from being used against our citizens. Even so, we ask the public to be vigilant and report suspicious activity to law enforcement.”
Mr. Ferrer commended the investigative efforts of the FBI, JTTF, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), U.S. Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI), Key West Police Department, Monroe County Sheriff’s Office, and Palm Beach County Sheriff’s Office. This case is being prosecuted by Assistant United States Attorneys Marc S. Anton and Karen E. Gilbert and Trial Attorneys Clement McGovern and Michael Dittoe of the Counterterrorism Section of the U.S. Department of Justice.
A complaint is only an accusation and a defendant is presumed innocent unless and until proven guilty.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Michigan Man Convicted of Fraud and Aggravated identity Theft for Using Fake Charitable OrganizationsRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that on July 27, 2015, a Michigan man was convicted by a jury of making numerous false statements, identity theft, and engaging in a scheme to operate fake charitable organizations.
Alan Michael Bartlett, 46, from Owosso, Michigan, was found guilty of two counts of mail fraud, 20 counts of bank fraud, five counts of wire fraud, five counts of false statements to the United States Postal Service, and five counts of aggravated identity theft.
Bartlett was tried before Chief United States District Court Judge Ralph R. Beistline, in Anchorage, Alaska.
The evidence presented at trial proved that Bartlett had established two businesses, United States Disabled Veterans, LLC, and United States Handicapped-Disadvantaged Services, LLC, whose alleged mission was “to help provide real jobs for disabled & disadvantaged Americans.” The companies claimed to sell products for donations, the orders for which would “provide jobs for the handicapped.” There were no “jobs,” and the donations received did not go to veterans or the disabled and disadvantaged. Instead, these companies were used by Bartlett between July 2011 and January 2012, in a scheme to defraud individuals and a financial institution in Alaska, and obtain additional monies belonging to individual donors.
The evidence at trial further showed that Bartlett solicited donations through telemarketing calls and through the mailing of brochures from his companies. Upon the receipt of small donations by check, Bartlett created counterfeit demand drafts using information printed on the solicited checks, including the financial institution name, financial institution routing number, and associated customer account number. He then negotiated the counterfeit demand drafts via fraudulent electronic payment transactions for his personal financial gain and benefit - investing in his E*Trade accounts, paying credit card bills, paying for Verizon Wireless telephone service, and paying on his defaulted student loan with the United States Department of Education. He also submitted forged power of attorney forms with falsified notary seals to the financial institution in an effort to get transactions that had been reversed by the financial institution for fraud, credited back to him.
Bartlett used personal identifying information obtained from people who sent donations thinking they were giving to charitable organizations, to submit false change of address requests to the United States Postal Service. He forged the signatures on the change of address requests and listed the street address of his residence in Owosso, MI, as the forwarding address. As a result, he received investment and financial information which should have gone directly to donors/victims.
Using the fabricated persona of a municipal law enforcement detective, Bartlett contacted one victim by telephone to dissuade the victim from reporting or providing additional information about Bartlett’s scheme to law enforcement.
Bartlett learned about the telemarketing business and obtained donor call lists when employed by telemarketing companies in Arizona in 2008; those companies were shut down in 2009 by the Federal Trade Commission for making false representations that that they were charities and that donations/purchases would go to help handicapped or disabled people.
Sentencing has been scheduled for October 19, 2015. The law provides for a maximum total sentence of 30 years in prison, and a fine of $250,000 on the fraud and false statement charges. The crime of aggravated identity theft requires a mandatory consecutive two year sentence upon each count of conviction, and a fine of $250,000. Under the federal sentencing statutes, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Ms. Loeffler commends the United States Postal Inspection Service for the investigation of this case.
Miami Resident and ISIL Sympathizer Sentenced to 10 Years in Prison for Illegally Possessing a FirearmRead the Press Release
Miguel Moran Diaz, 45, of Miami, was sentenced yesterday by U.S. District Judge Joan A. Lenard of the Southern District of Florida to the statutory maximum term of 120 months in prison, to be followed by three years of supervised release, following his guilty plea for being a felon in possession of a firearm.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and members of the South Florida Joint Terrorism Task Force (JTTF) made the announcement.
“The U.S. Attorney’s Office is committed to using our law enforcement resources in order to disrupt potential terroristic plots and prosecute those individuals who seek to jeopardize our security,” said U.S. Attorney Ferrer. “Individuals who unlawfully possess firearms and advocate for violent extremism will continue to be identified, prosecuted and brought to justice under the federal sentencing guidelines.”
“Miguel Moran Diaz was an armed, convicted felon who harbored sympathies for the Islamic State of Iraq and Syria,” said Special Agent in Charge Piro. “He called himself a ‘Lone Wolf’ for ‘ISIS.’ This is not a scenario where law enforcement can afford to wait and see what happens next. The FBI and our partners in the Joint Terrorism Task Force investigated and disrupted this threat to South Florida.”
According to court documents and statements made in court, in late January 2015, Diaz came to the attention of the FBI due in part to Facebook postings in the name of “Azizi Al Hariri,” a photo of Diaz possessing a firearm and articles regarding the Islamic State of Iraq and Syria (ISIS), a designated foreign terrorist organization. Thereafter, during a subsequent undercover operation, Diaz told an FBI confidential source that he was a convicted felon and could not purchase a firearm. Diaz asked the confidential source to purchase him a “baby Glock” (a small concealable semi-automatic firearm) and other weapons, in exchange for $500. Diaz proposed that he would arrange to have the guns “stolen” from the confidential source’s vehicle.
Diaz also advised that he already owned a number of weapons, including a rifle, handgun and a Ket Tec 2000 with a collapsible stock that he would use to conceal the firearm. Diaz showed the confidential source photographs of him holding firearms and also displayed a gun that was concealed in his vehicle.
On Jan. 30, 2015, during a meeting with the confidential source in Miami, Diaz described himself as a “Lone Wolf” for ISIS. Diaz indicated that he wanted to acquire a .308 caliber bolt action rifle and intended to scratch “ISIS” into the shell casings. Diaz claimed that after he killed people, authorities would find the shell casings and put the city on lockdown as they attempted to locate the sniper. Diaz also used his iPhone to view Al-Qaida in the Arabian Peninsula’s (AQAP’s) Inspire Magazine website in order to learn how to build bombs.
On Feb. 8, 2015, the confidential source again met with Diaz in Miami in order to conduct target practice with loaded firearms.
On March 20, 2015, the confidential source asked Diaz if he would like to purchase any additional ammunition. Diaz stated that he had approximately 500 rounds of ammunition at his residence, but wanted to purchase 500 additional rounds if the price was good.
On April 2, 2015, the FBI executed a warrant and found Diaz driving a vehicle while in possession of a .40 caliber handgun loaded with 15 rounds of ammunition and a magazine containing 15 addition rounds. A search of Diaz’s residence revealed an additional Kel-tec 2000, .40 caliber rifle and approximately 200 to 300 rounds of .40 caliber ammunition.
U.S. Attorney Ferrer commended the investigative efforts of the FBI and JTTF. The case is being prosecuted by Assistant U.S. Attorneys Marc S. Anton and Karen E. Gilbert of the Southern District of Florida.
A copy of this press release may be found on the website of the U.S. Attorney’s Office of the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the U.S. District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Miami Resident and Isil Sympathizer Sentenced to 10 Years in Prison for Illegally Possessing A FirearmRead the Press Release
Miguel Moran Diaz, 45, of Miami, Florida, was sentenced yesterday by United States District Judge Joan A. Lenard to the statutory maximum term of 120 months in prison, to be followed by three years of supervised release, following his guilty plea for being a felon in possession of a firearm, in violation of Title 18, United States Code, Section 922(g)(1).
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and members of the South Florida Joint Terrorism Task Force (JTTF), made the announcement.
According to court documents and statements made in court, in late January 2015, Diaz came to the attention of the FBI due in part to Facebook postings that included a photo of Diaz possessing a firearm and articles regarding the Islamic State of Iraq and Syria (ISIS), a designated foreign terrorist organization.
Thereafter, Diaz told an FBI confidential human source (CHS) that he was a convicted felon and could not purchase a firearm. Nevertheless, Diaz asked the CHS to purchase a handgun and other weapons in exchange for $500. Diaz also advised that he already owned a number of firearms. Diaz showed the CHS photographs of him holding the weapons and displayed a gun that was concealed in his vehicle.
On January 30, 2015, during a meeting with the CHS, Diaz described himself as a “Lone Wolf” for “ISIS.” Diaz indicated that he wanted to acquire a rifle and intended to scratch “ISIS” into the shell casings so that, after an attack, the authorities would find the shell casings and know what group was responsible.
On February 8, 2015, the CHS again met with Diaz in Miami, in order to conduct target practice with loaded firearms.
On March 20, 2015, the CHS asked Diaz if he would like to purchase additional ammunition. Diaz stated that he had approximately 500 rounds of ammunition at his residence, but wanted to purchase 500 additional rounds.
On April 2, 2015, the FBI arrested Diaz while in possession of a .40 caliber handgun, loaded with fifteen rounds of ammunition, and a magazine containing fifteen additional rounds. A search of Diaz’s residence uncovered more firearms and ammunition.
“The U.S. Attorney’s Office is committed to using our law enforcement resources in order to disrupt potential terroristic plots and prosecute those individuals who seek to jeopardize our security. Individuals who unlawfully possess firearms and advocate for violent extremism will continue to be identified, prosecuted and brought to justice under the federal sentencing guidelines,” stated U.S. Attorney Wifredo A. Ferrer.
“Miguel Moran Diaz was an armed, convicted felon who harbored sympathies for the Islamic State of Iraq and Syria. He called himself a ‘Lone Wolf’ for ‘ISIS,’” said George L. Piro, Special Agent in Charge, FBI Miami. “This is not a scenario where law enforcement can afford to wait and see what happens next. The FBI and our partners in the Joint Terrorism Task Force investigated and disrupted this threat to South Florida.”
Mr. Ferrer commended the investigative efforts of the FBI and JTTF. The case was prosecuted by Assistant U.S. Attorneys Marc S. Anton and Karen E. Gilbert.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Member of Lucchese Organized Crime Family Sentenced to 360 Months in Prison for Racketeering and Other CrimesRead the Press Release
A member of the Lucchese organized crime family of La Cosa Nostra (LCN) was sentenced today to serve 360 months in prison for participating in a racketeering conspiracy and related offenses. Three other members of the conspiracy are scheduled to be sentenced later this week.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Paul J. Fishman of the District New Jersey made the announcement.
“Nicodemo Scarfo and his associates tried to take La Cosa Nostra corporate, using traditional, strong-arm mob tactics to take over a publicly traded company and loot it like a personal piggy bank,” said Assistant Attorney General Caldwell. “The Justice Department will fight organized crime wherever it may surface – from back alleys to public board rooms – to ensure that crime does not pay.”
“Scarfo and his crew gave new meaning to the term ‘corporate takeover,’ pushing out the legitimate leadership of a publicly traded company and then looting it,” said U.S. Attorney Fishman. “They used false SEC filings, phony consulting agreements and more traditional mob methods to steal $12 million from the company’s shareholders. That’s a risk that investors should never have to take.”
Nicodemo S. Scarfo, 50, of Galloway, New Jersey; Salvatore Pelullo, 48, of Philadelphia, an associate of the Philadelphia and Lucchese LCN families; William Maxwell, 56, of Houston, a Texas attorney; and John Maxwell, 63, of Dallas, were convicted in July 2014, after a six-month trial, of racketeering conspiracy and related offenses, including securities fraud, wire fraud, mail fraud, bank fraud, extortion, money laundering and obstruction of justice.
In addition to sentencing Scarfo to prison, U.S. District Judge Robert B. Kugler ordered Scarfo to forfeit his interest in certain properties and to pay restitution in the amount of approximately $14 million. Pelullo, William Maxwell and John Maxwell are scheduled to be sentenced later this week.
According to evidence presented at trial, since 1989, Scarfo has been a member of the Lucchese family. As a member, he was required to earn money and participate in the affairs of the Lucchese family.
The trial evidence showed that, in April 2007, Scarfo, Pelullo and others conspired to take control of FirstPlus Financial Group Inc. (FPFG), a publicly-held company in Texas, by using threats of economic harm to intimidate and remove FPFG’s management and board of directors, and to replace them with persons beholden to Scarfo and Pelullo, including William Maxwell and his brother, John Maxwell. The evidence introduced at trial further demonstrated that, once the takeover had occurred, FPFG’s new board of directors named William Maxwell as “special counsel” to FPFG and John Maxwell as the company’s CEO, positions that they used to funnel approximately $12 million to themselves, Scarfo and Pelullo through fraudulent legal services and consulting agreements. According to evidence presented at trial, Scarfo and Pelullo used their illicit gains to fund extravagant purchases, including an $850,000 yacht, a luxury home, a Bentley automobile and thousands of dollars in jewelry.
The indictment also named as co-conspirators Nicodemo D. Scarfo, or Scarfo Sr., the imprisoned former boss of the Philadelphia LCN family, and Vittorio Amuso, the imprisoned boss of the Lucchese LCN family. Five other defendants – Cory Leshner, Howard Drossner, John Parisi, Todd Stark and Scarfo’s wife, Lisa Murray-Scarfo – previously pleaded guilty to various charges related to their roles in the conspiracy.
The case was investigated by the FBI’s Newark, New Jersey, Division, with assistance from the U.S. Department of Labor-Office of Inspector General’s Office of Labor Racketeering and Fraud Investigations New York Region, the FBI’s Philadelphia Division and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by Trial Attorney Adam L. Small of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Steven D’Aguanno and Howard Wiener of the District of New Jersey.
Member of Lucchese Organized Crime Family Sentenced to 30 Years in Prison for Racketeering and Other CrimesRead the Press Release
Three Conspirators to be Sentenced This Week
CAMDEN, N.J. – A member of the Lucchese organized crime family of La Cosa Nostra (LCN) was sentenced today to 30 years in prison for participating in a racketeering conspiracy and related offenses. Three other members of the conspiracy are scheduled to be sentenced later this week.
U.S. Attorney Paul J. Fishman of the District New Jersey and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and made the announcement.
Nicodemo S. Scarfo, 50, of Galloway, New Jersey was sentenced today by U.S. District Judge Robert B. Kugler to 360 months in prison. Scarfo was convicted in July 2014, along with Salvatore Pelullo, 48, of Philadelphia, an associate of the Philadelphia and Lucchese LCN families; William Maxwell, 56, of Houston, a Texas attorney; and John Maxwell, 63, of Dallas, of racketeering conspiracy and related offenses, including securities fraud, wire fraud, mail fraud, bank fraud, extortion, money laundering and obstruction of justice, after a six-month trial before Judge Kugler in Camden federal court.
“Scarfo and his crew gave new meaning to the term ‘corporate takeover,’ pushing out the legitimate leadersip of a publicly traded company and then looting it,” U.S. Attorney Fishman said. “They used false SEC filings, phony consulting agreements and more traditional mob methods to steal $12 million from the company’s shareholders. That’s a risk that investors should never have to take.”
“Nicodemo Scarfo and his associates tried to take La Cosa Nostra corporate, using traditional, strong-arm mob tactics to take over a publicly traded company and loot it like a personal piggy bank,” Assistant Attorney General Caldwell said. “The Justice Department will fight organized crime wherever it may surface – from back alleys to public board rooms – to ensure that crime does not pay.”
According to documents filed in this case and the evidence presented at trial:
Since 1989, Scarfo has been a member of the Lucchese family. As a member, he was required to earn money and participate in the affairs of the Lucchese family.
In April 2007, Scarfo, Pelullo and others conspired to take control of FirstPlus Financial Group Inc. (FPFG), a publicly held company in Texas, by using threats of economic harm to intimidate and remove FPFG’s management and board of directors, and to replace them with people beholden to Scarfo and Pelullo, including the Maxwell brothers. Once the takeover had occurred, FPFG’s new board of directors named William Maxwell as “special counsel” to FPFG and John Maxwell as the company’s CEO, positions that they used to funnel $12 million to themselves, Scarfo and Pelullo through fraudulent legal services and consulting agreements. Scarfo and Pelullo used their illicit gains to fund extravagant purchases, including an $850,000 yacht, a luxury home, a Bentley automobile and thousands of dollars in jewelry.
The indictment also named as conspirators Scarfo’s father, Nicodemo D. Scarfo, or Scarfo Sr., the imprisoned former boss of the Philadelphia LCN family; and Vittorio Amuso, the imprisoned boss of the Lucchese LCN family. Five other defendants – Cory Leshner, Howard Drossner, John Parisi, Todd Stark and Scarfo’s wife, Lisa Murray-Scarfo – previously pleaded guilty to various charges related to their roles in the conspiracy.
In addition to the prison term, Judge Kugler sentenced Scarfo to five years of supervised release and ordered him to forfeit his interest in certain properties and to pay restitution of $14 million. Pelullo, William Maxwell and John Maxwell are scheduled to be sentenced later this week.
U.S. Attorney Fishman and Assistant Attorney General Caldwell credited special agents of the FBI in Newark, under the direction of Special Agent in Charge Richard M. Frankel, with the investigation leading to today’s sentencing. They also thanked the U.S. Department of Labor-Office of Inspector General’s Office of Labor Racketeering and Fraud Investigations New York Region, the FBI’s Philadelphia Division and the Bureau of Alcohol, Tobacco, Firearms and Explosives for their roles in the case.
The government is represented by Assistant U.S. Attorneys Steven D’Aguanno and Howard Wiener of the District of New Jersey and Trial Attorney Adam L. Small of the Criminal Division’s Organized Crime and Gang Section.
Defense counsel: Michael E. Riley Esq., Mount Holly, New Jersey
McAllen Man Sentenced for Using Government Vehicle to Deliver CocaineRead the Press Release
McALLEN, Texas ‐ Mario Guadalupe Saenz, 28, of McAllen, has been ordered to federal prison following his conviction of attempting to possess with intent to distribute approximately nine kilograms of cocaine, announced U.S. Attorney Kenneth Magidson. Saenz pleaded guilty Jan. 28, 2015.
Today, U.S. District Judge Randy Crane, who accepted the guilty plea, handed Saenz a 135-month sentence to be immediately followed by five years of supervised release. The sentence was enhanced because the defendant possessed a dangerous weapon in the course of committing the offense and because he used Facebook to advertise he could use a vehicle with U.S. government license plates to bring drugs north of the border fence.
On Oct. 9, 2014, Saenz was observed driving a white Dodge Ram registered to the U.S. Department of Agriculture (USDA). He drove through an opening in the border fence and retrieved a bag from the brush near the Rio Grande River in Hidalgo County. He then used the government vehicle to transport the bag to a business parking lot in McAllen where Saenz bragged to an undercover officer that he had waived at the Border Patrol agents during the transport.
Saenz was subsequently arrested as investigators discovered the bag contained approximately 9.39 kilograms of a suspected controlled substance, 1.1 kilograms of which tested positive for the properties of cocaine.
Saenz will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation leading to the charges was conducted by Homeland Security Investigations, USDA-Office of Inspector General and the McAllen Police Department. Assistant U.S. Attorney Kristen Rees prosecuted the case.
Man Pleads Guilty to Using Firearm During Carjacking at St. Croix Educational ComplexRead the Press Release
St. Croix, USVI –James Cruz, 20, pleaded guilty today in District Court on St. Croix to Using a Firearm during a Crime of Violence, United States Attorney Ronald W. Sharpe announced. As part of the plea, Cruz admitted that on February 21, 2015 at the St. Croix Educational Complex, he and an accomplice ordered two people onto the ground at gun point, and then drove off with their pick-up truck. Virgin Islands Police Department (VIPD) officers pursued Cruz and his accomplice, who abandoned the truck and fled on food in the Longpoint area. The officers quickly captured them.
The accomplice is a juvenile and has been adjudicated through the Office of the Attorney General of the Virgin Islands.
A sentencing hearing for Cruz is set for November 24, 2015. Cruz faces a mandatory minimum sentence of seven years in prison. He is detained pending sentencing.
This case was investigated by the VIPD and the Federal Bureau of Investigation, and is being prosecuted by Assistant U.S. Attorney Christian H. Stringer.
Man Charged for Failing to Comply with Sex Offender Registration RequirementsRead the Press Release
SCRANTON - The United States Attorney's Office for the Middle District of Pennsylvania announced today that an indictment was returned by a grand jury charging a Wilkes-Barre man with failing to comply with sex offender registrations requirements.
According to United States Attorney Peter Smith, Joseph Brant, age 55, a current resident of the Sherman Hills Apartments in Wilkes-Barre, is charged with being a person required to comply with the Sex Offender Registration and Notification Act by reason of a sexual abuse conviction under the laws of the State of New York. It is alleged that Brant traveled interstate to Pennsylvania and established a residence in Wilkes-Barre but failed to register and update his sex offender registration information in Pennsylvania.
The charges are the result of an investigation by the United States Marshals Service - Scranton and New York offices. Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 10 years of imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Local Man Sentenced to Prison for Credit Card Fraud and Identity TheftRead the Press Release
Tampa, FL – United States District Judge James D. Whittemore has sentenced Dariel Sardinas Lopez (22, Tampa) to four years in federal prison for credit card fraud and identity theft. He pleaded guilty on April 22, 2015.
According to court documents, Sardinas Lopez produced and trafficked in counterfeit credit cards. These fraudulent credit cards were encoded with the numbers and information of victims whose cards had been “skimmed” at local gas stations. The victims were often unaware their information had been stolen. Sardinas Lopez sold these counterfeit credit cards and also used them to purchase merchandise for himself.
This case was investigated by the Financial Crimes Task Force, which includes the United States Secret Service, the Florida Department of Law Enforcement, the Hillsborough Sheriff’s Office, and the Tampa Police Department. It was prosecuted by Assistant United States Attorney Kelley C. Howard-Allen.
KC Area Man Sentenced to 12 Years for Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced a homeless man was sentenced in federal court today for illegally possessing a firearm and ammunition.
Shain D. Sohl, 36, with no legal address, was sentenced by U.S. Chief District Judge Greg Kays to 12 years and six months in federal prison without parole.
On Feb. 18, 2015, Sohl pleaded guilty to being a felon in possession of a firearm and to being a felon in possession of ammunition.
On July 15, 2014, Sohl’s ex-wife reported to law enforcement that Sohl had fired a pistol at her while she was driving him in a truck. During the trip, Sohl became verbally abusive toward her and started grabbing the steering wheel. She attempted to pull the truck over and Sohl grabbed her and with his other hand drew a small pistol from his right front pocket and fired one round from it. The bullet grazed the right side of her face near her ear. A Jackson County sheriff’s deputy later located a single bullet that passed through the driver’s seat and then into the rear of the passenger door handle.
According to court documents, Sohl threatened his ex-wife with death and physically assaulted her on multiple occasions, although he had a protective order lodged against him.
On Feb. 25, 2014, the clerk of the Drury Inn Hotel reported suspicious activity to the Independence, Mo., Police Department. The clerk informed police officers that he smelled marijuana in the hallway outside of Sohl’s room and that he wanted the occupants evicted. A records check revealed an outstanding warrant for Sohl. The officers knocked on the door and, after an extended period, Sohl answered. The officers arrested Sohl on his outstanding warrant and received consent to search the room. They found a portable safe that contained a loaded Beretta pistol, 17 syringes, a notepad with dollar figures and $5,709 in cash.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Sohl has a prior felony conviction for possession of a controlled substance.
According to court documents, Sohl engaged in a course of conduct over a term of several months that involved multiple instances of aggressive, violent and stalking behavior, including threats to kill his ex-wife and threats to kill her child. He has been found with different firearms on multiple occasions.
This case was prosecuted by Assistant U.S. Attorney Bruce Clark. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Justice Department Announces Departure of Criminal Division Leader Marshall L. MillerRead the Press Release
After more than 13 years of service as a federal prosecutor, including 16 months as Principal Deputy Assistant Attorney General and Chief of Staff of the Criminal Division, Marshall L. Miller will leave the Justice Department. His last day will be Friday, July 31, 2015. David Bitkower has been selected to assume the position following Miller’s departure.
“Marshall Miller is an outstanding attorney, a remarkable public servant, and an unwavering advocate for the principles of justice,” said Attorney General Loretta E. Lynch. “Throughout his career in law enforcement – from the Eastern District of New York to Washington, D.C. – he has taken on some of America's most pressing challenges. He has strengthened our country and empowered our communities. And he has demonstrated his commitment to fair application of the law. I commend him for his extraordinary service to the Department of Justice and to the American people, and I look forward to all that he will continue to achieve in the days and years ahead.”
“Throughout his career as a prosecutor, Marshall has inspired his colleagues with his unfailing commitment to the pursuit of justice,” said Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division. “He has been a real force in the Criminal Division, and has had a strong voice in all the key decisions we have made during my tenure. While Marshall’s departure is a great loss to the department, I am grateful to have someone with David’s experience, intellect and dedication to help guide me in leading the Criminal Division.”
Miller was appointed to his current position on April 17, 2014, from the U.S. Attorney’s Office of the Eastern District of New York, which Miller joined in 1999 as an Assistant U.S. Attorney. While in the U.S. Attorney’s Office, Miller served as Chief and Deputy Chief of the Criminal Division, Chief and Deputy Chief of the Violent Crimes and Terrorism Section and Deputy Chief of the General Crimes Section. He conducted and supervised numerous significant and complex investigations and prosecutions, including cases involving terrorism, organized crime, violent crime, political corruption and financial fraud.
For his work, Miller received a number of the department’s highest awards, including the Attorney General’s Award for Excellence in Furthering the Interests of National Security and the Director’s Award for Superior Performance. He also received the Henry L. Stimson Medal from the New York City Bar Association, the National Intelligence Merit Award from the Director of National Intelligence and a Federal Prosecutor of the Year Award from the Federal Law Enforcement Foundation. In 2009, Miller was recognized for the most outstanding performance by an Assistant U.S. Attorney by the National Association of Former U.S. Attorneys.
Miller has also significantly engaged in the teaching of law. He has served as a professor at New York University (NYU) School of Law, where he founded the NYU Federal Prosecution Clinic at the Eastern District of New York. He also served as an adjunct professor at Fordham University School of Law.
Before joining the department, Miller clerked for U.S. District Judge Allyne R. Ross of the Eastern District of New York. He earned both his undergraduate and law degrees from Yale University.
Since April 2013, David Bitkower has served as a Deputy Assistant Attorney General of the Criminal Division, overseeing the Computer Crime and Intellectual Property Section, the Human Rights and Special Prosecutions Section and the Organized Crime and Gang Section. He has represented the Department of Justice at Congressional hearings and in international fora, including the United Nations Committee against Torture in Geneva.
Prior to joining the Criminal Division, Bitkower was an Assistant U.S. Attorney in the Eastern District of New York. He served most recently as the first Chief of the National Security and Cybercrime Section, and previously served as Chief and Deputy Chief of the Violent Crimes and Terrorism Section. From 2008 to 2009, Bitkower also served on detail to the Justice Department’s Counterterrorism Section of the National Security Division and to the President’s Guantanamo Bay Review Task Force.
Bitkower has received several notable awards, including the Attorney General’s Award for Exceptional Service. Before joining the Department of Justice, Bitkower was a law clerk for U.S. Circuit Judge Pierre N. Leval of the Second Circuit Court of Appeals and for U.S. District Judge Leonard B. Sand of the Southern District of New York. He is a graduate of Yale University and Harvard Law School, where he served as an editor of the Harvard Law Review.
Jury Convicts Norfolk Man of Tax Fraud SchemeRead the Press Release
NORFOLK, Va. – Ronald Chisholm, 53, of Norfolk, was convicted today by a federal jury on charges of conspiracy, mail fraud, and aggravated identity theft in connection with a scheme to defraud the IRS.
Chisholm originally pleaded guilty on Oct. 6, 2014, and later withdrew his plea. According to court records and evidence presented at trial, Chisholm’s scheme was discovered in 2013 after a local check cashing business noticed one of its employees had cashed over $2 million in U.S. Treasury checks. The employee of the check cashing business identified Ronald Chisholm as the person who paid her $200 per check to cash the treasury checks in violation of the company’s policies. A subsequent IRS investigation determined that Chisholm, along with unidentified co-conspirators, stole the personal identifying information of numerous people and filed at least 810 fraudulent income tax returns. As a result of these false returns, Chisholm and his co-conspirators received a total of $2.6 million in fraudulent income tax refunds.
Chisholm faces a maximum penalty of 128 years in prison when sentenced on Nov. 9, 2015. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Thomas J. Kelly, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation, made the announcement after the verdicts were accepted by Senior U.S. District Judge Robert G. Doumar. Assistant U.S. Attorney Joseph L. Kosky is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:14-cr-132.
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Indictment Unsealed Charging Three New Orleans East Residents with Federal Drug and Firearms ViolationsRead the Press Release
U.S. Attorney Kenneth A. Polite announced the unsealing of an eleven-count Indictment yesterday charging LEROY SMITH, age 31, JAMIE JONES, age 32, and KENNETH MIXON, age 31, all of New Orleans East, with violations of federal drug and firearms laws. All of the defendants face the lead charge of conspiracy to distribute and possess with intent to distribute heroin, along with other substantive drug offenses. All of the defendants were charged with using a telephone in furtherance of their drug conspiracy. Defendants SMITH and JONES were also charged with possessing firearms in furtherance of the drug offenses. Finally, SMITH was charged with being a convicted felon in possession of a firearm.
If convicted of the drug conspiracy, SMITH and JONES face a minimum sentence of 5 years incarceration, a maximum sentence of 40 years in prison, a fine of not more than $5,000,000, and a minimum of four years of supervised release. On the drug conspiracy, MIXON faces a maximum sentence of 20 years incarceration, a fine of not more than $1,000,000, and a minimum of three years of supervised release. On the telephone counts, the defendants face a maximum sentence of 4 years incarceration, a fine of not more than $250,000, and a maximum of three years of supervised release. For possessing the firearms in furtherance of the drug offenses, SMITH and JONES face a minimum sentence of 5 years incarceration, a fine of not more than $250,000, and a maximum three years of supervised release. Lastly, on the felon in possession charge, SMITH faces a maximum sentence of 10 years incarceration, a fine of not more than $250,000, and a maximum three years of supervised release.
U.S. Attorney Polite reiterated that the Indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration and the New Orleans Police Department in investigating this matter. Assistant U.S. Attorney Brandon S. Long is in charge of the prosecution.
Indictment Charges Philadelphia Resident with Illegal ReentryRead the Press Release
Joel Junior Lantigua-Lora, 28, of Philadelphia, PA, was charged today by Indictment with illegal reentry after deportation, announced United States Attorney Zane David Memeger. The indictment alleges that on or about June 24, 2015, Lantigua-Lora, an alien, and native and citizen of the Dominican Republic, was found in the United States after having been deported from the United States on or about August 23, 2012.
If convicted the defendant faces a maximum possible sentence of 20 years.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Joan E. Burnes.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Independence Man Sentenced to 15 Years for Child PornRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Independence, Mo., man was sentenced in federal court today for attempting to produce child pornography by secretly recording videos of unsuspecting victims in restrooms and changing rooms in various businesses at Independence Center and elsewhere.
Nicholas A. Braile, 26, of Independence, was sentenced by U.S. District Judge Gary A. Fenner to 15 years in federal prison without parole.
On Feb. 18, 2015, Braile pleaded guilty to two counts of attempting to produce child pornography. Under Department of Justice guidelines, the attempted production of child pornography is ordinarily charged in cases that involve surreptitious recordings. The statutory penalties for producing child pornography are the same as the penalties for attempting to produce child pornography.
Braile was arrested at a Walmart store in Independence on May 15, 2014, when a Walmart security guard caught him taking an “up skirt” photo of a female customer with his cell phone. Law enforcement officers arrested Braile and obtained search warrants for his cell phone and residence, where they seized a desktop computer and a laptop computer.
Investigators located video files on the desktop computer of women and girls changing in store dressing rooms, videos taken in the restroom at Braile’s work place (Harbor Freight Tools in Independence) and “up skirt” video files from several businesses at Independence Center. All of the businesses involved in the investigation cooperated fully with law enforcement officers.
The store manager at Harbor Freight Tools identified photographs of two teenage victims as store employees. The photographs were taken from videos that depicted the teens using the restroom and changing clothes at Harbor Freight Tools. Braile also filmed customers who used the restroom, including adults and small children. Detectives observed the restroom where the videos had been produced. There was a small section of the ceiling where the ceiling tile was missing. This restroom was next to a janitor closet. Located in the ceiling of the janitor closet was a paint roller, without the brush, that was positioned over the hole in the ceiling tile in the restroom. Detectives surmised that the paint roller was used to hold Braile’s cell phone over the hole in the ceiling tile so that he could film the teens in the restroom without their knowledge.
Detectives determined that a victim in one of the “up-skirt” videos located on Braile’s computer worked at a store in Independence Center. The store manager identified the 16-year-old victim. The video depicts Braile asking the victim for assistance and then, because of his close proximity to her, Braile is able to maneuver his phone into a position to film up the victim’s skirt.
Braile’s cell phone contained several “up skirt” and dressing room videos from dates shortly prior to his arrest. In several videos, Braile followed females around stores until he was able to get his phone under their skirt. In one video he looked under a dressing room stall and moved to another dressing room to get closer to a female victim. In another instance a prepubescent girl was standing next to her father when Braile took a video up her skirt.
The forensic examination of Braile’s computers and phone also located approximately 468 photographs he had taken of prepubescent female children. These images were taken at Braile’s work place and at Independence Center. The images depict children shopping with their parents. There is no nudity in the images but they focus on the buttocks and crotch area of the children.
The forensic examiner also located child pornography that had been downloaded from the Internet. The collection, most of which was located on a laptop computer, included 138 video files of child pornography. There were also so-called “modeling images” of young girls approximately 9 to 14 years of age.
This case was prosecuted by Assistant U.S. Attorney Teresa A. Moore. It was investigated by the Independence, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Hospice Company Owner Sentenced to Serve Three Years in Prison and Pay over $2.5 Million in Restitution for Medicare FraudRead the Press Release
Oklahoma City, Oklahoma – PAULA KLUDING, 39, from Chandler, Oklahoma, the owner of Prairie View Hospice, Inc., an Oklahoma corporation located in Chandler, was sentenced by United States District Judge Robin Cauthron to serve three years in prison for committing Medicare fraud, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma. As part of her sentence, Kluding was also ordered to pay $2,519,813.33 in restitution to Medicare. Kluding will also spend three years on supervised release following her release from prison.
According to evidence presented at trial, Prairie View Hospice was in business to provide hospice care to Medicare beneficiaries. Hospice care consists of providing health care, medication, medical equipment, and other goods and services to terminally ill patients. From July of 2010 through July of 2013, Kluding conspired with others to conceal the true medical condition of Prairie View Hospice’s patients and the true quality and quantity of health care services they were receiving in order to "pass" a Medicare audit and to fraudulently obtain money from Medicare. Specifically, certain medical documents were falsified to make it appear that nurses had visited patients or conducted necessary assessments when such visits and assessments had not, in fact, been made. Nursing notes were also falsified to make it appear that patients were in worse health than they actually were in order to justify to Medicare the patient’s continued hospice care. In addition, Prairie View Hospice, acting through Kluding, sent the falsified documents to a Medicare subcontractor in response to requests to audit patient files and in support of claims for Medicare reimbursement.
The trial lasted for four and half days and the jury deliberated about six hours before returning a guilty verdict on 39 separate counts relating to Medicare fraud, conspiracy, obstruction of a federal audit, and making false statements in health care matter. Kluding was ordered to report on August 28, 2015, to the U.S. Bureau of Prisons to begin serving her sentence.
This case is the result of an investigation by the U.S. Department of Health and Human Services Office of Inspector General and the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorneys Amanda Maxfield Green and Jessica Perry.
Grand Junction business owner pleads guilty to income tax evasionRead the Press Release
DENVER – Michael E. Ho, age 69, of Grand Junction, Colorado, pled guilty today before U.S. District Court Judge Christine M. Arguello to income tax evasion, United States Attorney John Walsh, IRS Criminal Investigation Special Agent in Charge Steven Osborne announced. Judge Arguello is scheduled to sentence Ho on October 28, 2015 at 3:00 p.m. Ho was indicted by a federal grand jury in Denver on October 28, 2014, and was arrested on November 13, 2014.
According to the indictment and plea agreement, Ho owned and managed a dental clinic formerly known as Skyline Dental located in Grand Junction, Colorado from approximately 1999 through at least 2004 in which he employed licensed dentists to provide dental services to patients. Skyline Dental operated as a “d/b/a” for the parent corporation “Five-O Enterprises” which HO owned and controlled starting in the year 2001. In February of 2004, the State Board of Dental Examiners enjoined the Ho from owning and operating Skyline Dental Clinic based as Ho was never licensed to practice dentistry and the State Board took the position that only licensed dentists are permitted to own Dental Clinics.
Ho sold the practice in December 2004 to a licensed Dentist and Ho was hired to manage the clinic. In 2006, Ho and the owner had a business dispute which resulted in the dentist defaulting on his purchase agreement with Ho. Ho then sold the practice to a different dentist in November of 2006 for $3.5 million hereby Ho was paid a salary for managing the dental practice. In 2010, the Dentist rescinded his contracts with H. Ho in turn converted Skyline Dental clinic to a non-profit corporation, Colorado Community Dental Services “CCDS”, which allowed it to operate under state law without a dentist as its owner An Asset Purchase Agreement was executed between Five-O Enterprises and CCDS in the amount of $2 million. HO continued to manage Colorado Community Dental Services but did not receive a salary and did not hold a position on the Board of Directors.
During this same period, Ho also operated Preventative Dental as a d/b/a of Five-O Enterprises which sold dental plans to individuals and were then able to receive discounted dental services by the designated provider, Skyline Dental and later Colorado Community Dental Services. Ho received the income from Preventative Dental.
Ho evaded income tax due and owing by committing affirmative acts of evasion. Between 2006 and 2011, the Government has determined that $235,450 is the total tax due and owing by Ho. In an attempt to evade assessment of taxes by the IRS, Ho took a series of steps to include, but are not limited to, utilized multiple bank accounts (a personal account and business accounts) which he commingled funds from his various income producing activities making the assessment of tax difficult; he received interest income from the sale of Skyline Dental and did not report the interest income to his accountant in the years 2008 and 2009 when he received interest income of $156,005 and $67,225, respectively; he did not report the income from the sale of discount dental plans to his accountant and thus the income from Preventative Dental was not reported on his tax returns; he deposited cash receipts from Skyline Dental and Colorado Community Dental Services to his personal bank accounts in 2010 and 2011 and did not report the income on his tax returns.
Ho pled to one count of income tax evasion which carries a penalty of not more than 5 years in federal prison, and a fine of up to $250,000 per count.
This case was investigated by Internal Revenue Service – Criminal Investigation and is being prosecuted by Assistant U.S. Attorney Tim R. Neff.
Godfather of Portsmouth Bloods Gang Pleads Guilty to Drug and Gun ChargesRead the Press Release
NORFOLK, Va. – The “Godfather” of the Portsmouth-based Imperial Gangsta Bloods, a set affiliated with the United Blood Nation, pleaded guilty today to conspiring to manufacture, distribute, and possess with intent to distribute over one kilogram of heroin.
Christopher Smith, aka Killa, 32, of Portsmouth, Virginia, also pleaded guilty to possessing a firearm in furtherance of a drug trafficking crime. Over the course of the conspiracy, Smith and the Imperial Gangsta Bloods trafficked multiple kilograms of heroin in the Hampton Roads region, and numerous guns were seized during the investigation of the case.
In a statement of facts filed with the plea agreement, from early 2014 until September 2014, Smith and others working at his direction traveled to New York City, where they bought bulk quantities of heroin from Imperial Gangsta Bloods member Ricky Jackson, aka Sosa. The heroin was transported from New York City back to the Hampton Roads area where it was cut and prepared for street-level distribution by other members of the gang, including high-ranking members Junious Whitaker, aka Redd, and Howard Foust, aka Lil’ Howard. (Case details on Jackson, Whitaker, Foust and Stigger are in the table presented below).
In August 2014, Smith and other members of the gang were involved a series of violent altercations with twin brothers Jason and Jeremy Saunders, who ran a separate heroin trafficking organization in Portsmouth. On August 18, 2014, a member of the Imperial Gangsta Bloods gang shot Jeremy Saunders multiple times. Saunders survived the shooting. Days later, Smith, Whitaker and another gang member were involved in a separate shooting incident with the Saunders brothers (both of whom were later convicted in a separate federal drug prosecution). Several weeks after the second August shooting, Smith, Foust and two other individuals were stopped on the Eastern Shore of Virginia on their way back from New York City, where they had purchased approximately 275 grams of heroin.
Smith was indicted by a federal grand jury on April 22, 2015. He faces a maximum penalty of life in prison and a mandatory minimum of 25 years in prison when he is sentenced on October 30, 2015. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Name
Age, Hometown
Charges
Status
Christopher Smith
32, Portsmouth
Conspiring to distribute narcotics; possession of firearms in furtherance of a drug trafficking crime
Pleaded guilty July 28. Sentencing October 30, 2015.
Ricky Jackson
37, Hempstead, New York
Conspiracy to distribute narcotics
Pleaded guilty May 28, 2015. Sentencing Oct. 23, 2015.
Junious Whitaker
28, Portsmouth
Conspiracy to distribute narcotics; possession of firearms in furtherance of a drug trafficking crime
Pleaded guilty March 18, 2015. Sentenced June 23, 2015 to 25 years in prison.
Howard Foust
31, Portsmouth
Conspiracy to distribute narcotics
Pleaded guilty Feb. 2, 2015. Sentencing Oct. 23, 2015.
Jermarrieo Stigger
30, Virginia Beach, Virginia
Conspiracy to distribute narcotics; possession of firearms in furtherance of a drug trafficking crime
Pleaded guilty on June 15. Sentencing Sept. 22, 2015.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and John S. Adams, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after the guilty plea was accepted by U.S. Magistrate Judge Douglas Miller.
This case was investigated by the FBI’s Norfolk field office in conjunction with the ATF, the Portsmouth, Virginia Beach, and Norfolk Police Departments, and the Virginia State Police. This investigation was part of the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal, multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Assistant U.S. Attorneys Andrew Bosse and Joseph DePadilla are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:15cr7.
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Georgia Man Sentenced to 15 Years in Prison for Attempting to Provide Material Support to ISILRead the Press Release
Leon Nathan Davis, 37, of Augusta, Georgia, was sentenced today to 15 years in federal prison by U.S. District Judge J. Randal Hall of the Southern District of Georgia for attempting to provide material support to a designated foreign terrorist organization, namely, the Islamic State of Iraq and the Levant (ISIL). Davis pleaded guilty to an information charging him with attempting to provide material support to ISIL on May 27, 2015. His prison term will be followed by a lifetime of supervised release.
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Edward J. Tarver of the Southern District of Georgia and Special Agent in Charge J. Britt Johnson of the FBI’s Atlanta Field Office made the announcement.
“It is the obligation of all nations to serve as responsible global citizens and stem the flow of their residents from traveling abroad as foreign terrorist fighters engaged in the violence and oppression that ISIL is inflicting everywhere it operates,” said Assistant Attorney General Carlin. “One of the National Security Division’s top priorities remains stemming the flow of foreign fighters and bringing to justice those who seek to provide material support to foreign designated terrorist organizations.”
“This defendant planned for over a year to join, assist and fight alongside an enemy of the United States,” said U.S. Attorney Tarver. “His actions were criminal and he now faces a lengthy federal prison sentence. I commend the hard work of the federal and local agents who work to keep our nation safe from terrorist organizations such as ISIL.”
“The details and federal charges in this case provide a clear illustration of the problems that we face as a nation when our own citizens become radicalized in support of a foreign terrorist organization such as ISIL,” said Special Agent in Charge Johnson. “Today’s sentencing of Mr. Davis in federal court, however, clearly illustrates the consequences. The FBI will continue to partner with its various local, state and other federal law enforcement and intelligence agencies as we remain vigilant in identifying, investigating and presenting for prosecution those individuals who would pose a threat to our national security in this manner.”
Evidence produced at the guilty plea and sentencing hearings revealed that for more than a year, an FBI-led team investigated Davis’ attempts to join an overseas designated foreign terrorist organization. Davis was arrested at the Atlanta Hartfield-Jackson Airport in October 2014 on a parole violation, after he had purchased a ticket to fly to Turkey and then traveled from Augusta to the Atlanta airport. Davis has been in custody since his arrest.
Assistant Attorney General Carlin and U.S. Attorney Tarver commended the FBI-led Joint Terrorism Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Georgia Board of Pardons and Paroles for their work on this case. Carlin and Tarver also expressed gratitude to the U.S. Customs and Border Protection Service and the Atlanta Police Department for their contributions to the investigation.
The case was prosecuted by Assistant U.S. Attorneys Charlie Bourne and Nancy Greenwood of the Southern District of Georgia and Trial Attorney Clement McGovern of the Justice Department’s National Security Division.
Georgia Man Sentenced to 15 Years in Prison for Attempting to Provide Material Support to ISILRead the Press Release
WASHINGTON – Leon Nathan Davis, 37, of Augusta, Georgia, was sentenced today to 15 years in federal prison by U.S. District Judge J. Randal Hall of the Southern District of Georgia for attempting to provide material support to a designated foreign terrorist organization, namely, the Islamic State of Iraq and the Levant (ISIL). Davis pleaded guilty to an information charging him with attempting to provide material support to ISIL on May 27, 2015. His prison term will be followed by a lifetime of supervised release.
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Edward J. Tarver of the Southern District of New York and Special Agent in Charge J. Britt Johnson of the FBI’s Atlanta Field Office made the announcement.
“It is the obligation of all nations to serve as responsible global citizens and stem the flow of their residents from traveling abroad as foreign terrorist fighters engaged in the violence and oppression that ISIL is inflicting everywhere it operates,” said Assistant Attorney General Carlin. “One of the National Security Division’s top priorities remains stemming the flow of foreign fighters and bringing to justice those who seek to provide material support to foreign designated terrorist organizations.”
“This defendant planned for over a year to join, assist and fight alongside an enemy of the United States,” said U.S. Attorney Tarver. “His actions were criminal and he now faces a lengthy federal prison sentence. I commend the hard work of the federal and local agents who work to keep our nation safe from terrorist organizations such as ISIL.”
“The details and federal charges in this case provide a clear illustration of the problems that we face as a nation when our own citizens become radicalized in support of a foreign terrorist organization such as ISIL,” said Special Agent in Charge Johnson. “Today’s sentencing of Mr. Davis in federal court, however, clearly illustrates the consequences. The FBI will continue to partner with its various local, state and other federal law enforcement and intelligence agencies as we remain vigilant in identifying, investigating and presenting for prosecution those individuals who would pose a threat to our national security in this manner.”
Evidence produced at the guilty plea and sentencing hearings revealed that for more than a year, an FBI-led team investigated Davis’ attempts to join an overseas designated foreign terrorist organization. Davis was arrested at the Atlanta Hartfield-Jackson Airport in October 2014 on a parole violation, after he had purchased a ticket to fly to Turkey and then traveled from Augusta to the Atlanta airport. Davis has been in custody since his arrest.
Assistant Attorney General Carlin and U.S. Attorney Tarver commended the FBI-led Joint Terrorism Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Georgia Board of Pardons and Paroles for their work on this case. Carlin and Tarver also expressed gratitude to the U.S. Customs and Border Protection Service and the Atlanta Police Department for their contributions to the investigation.
The case was prosecuted by Assistant U.S. Attorneys Charlie Bourne and Nancy Greenwood of the Southern District of Georgia and Trial Attorney Clement McGovern of the Justice Department’s National Security Division.
Gautier Man Pleads Guilty to Aggravated Indentity TheftRead the Press Release
Gulfport, Miss – Edgardo Batiz Medina, 33, a resident of Gautier and a native of Puerto Rico, pled guilty today before Chief District Judge Louis Guirola to aggravated ID theft in a case involving the sale of birth certificates and social security cards, U. S. Attorney Gregory K. Davis announced.
Batiz Medina will be sentenced on October 22, 2015 and faces a maximum penalty of two years in federal prison and a $250,000 fine.
This case was investigated by Homeland Security Investigations. Assistant U.S. Attorney Annette Williams is prosecuting the case.
Four Sentenced for Filing over 1100 Fraudulent Tax Returns in South GeorgiaRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that the three following defendants were sentenced on July 27, 2015 in United States District Court by the Honorable W. Louis Sands, Senior U.S. District Court Judge.
Patrice Taylor, age 34, of Ashburn, Georgia, was sentenced today to serve 84 months in prison for conspiracy to commit wire fraud and aggravated identity theft. Mrs. Taylor was also ordered to pay restitution in the amount of $1,107,802.00 to the Internal Revenue Service.
Mrs. Taylor pled guilty to the charges on February 11, 2015. As a part of her plea agreement, Mrs. Taylor admitted that she conspired with her husband, Antonio Taylor, and Jarrett Jones to file over 1,100 fraudulent tax returns between January 2011 and February 2013. At least 1,089 of the returns were filed electronically from two IP addresses registered to Mrs. Taylor, both located at their home. From January 2012 to October 2012, a cell phone subscribed to Mrs. Taylor was used to call the Internal Revenue Service’s Automated Electronic Filing PIN Request 114 times.
Evidence presented by the United States at the sentencing hearing further showed that the identities, including the Social Security Numbers of 5 persons who were patients at Tift Regional Hospital were used by Mrs. Taylor to file fraudulent federal income tax returns. Mrs. Taylor was employed at Tift Regional Hospital during the time of the conspiracy. In addition, the Government’s evidence showed that the identities of 531 sixteen year olds were also used to file fraudulent federal income tax returns.
In January 2012, Mrs. Taylor filed her own fraudulent federal income tax return requesting a refund in the amount of $6,776. She claimed a dependent that she was not authorized by law to claim.
Jarrett Jones, aged 38, of Ty-Ty, Georgia, pled guilty to conspiracy to commit wire fraud and aggravated identity theft on October 9, 2014. He was sentenced by Judge Sands to 20 months imprisonment and ordered to pay restitution in the amount of $94,959.00.
Victoria Davis, aged 26, of Cordele, Georgia, entered her guilty plea on July 9, 2014 to one count of theft of government property and one count of aggravated identity theft. She was sentenced to serve 12 months in the Bureau of Prisons and pay restitution in the amount of $6,256.00.
Antonio Taylor was sentenced by Judge Sands on July 28, 2015 to serve 147 months in the Bureau of Prisons for his participation in the conspiracy. He was also ordered to pay restitution in the amount of $1,107,802 to the Internal Revenue Service. Mr. Taylor pled guilty to one count of conspiracy to commit wire fraud and aggravated identity theft on March 13, 2015. He has been in custody since the time of his arrest on March 12, 2014 and remains in custody.
“The stealing of a person’s identity to take money from the United States Treasury wreaks havoc not just on the individual victim, but also on every law-abiding taxpayer. These folks aren’t stealing from nameless, faceless people; they are stealing from each of us,” said U.S. Attorney Michael Moore.
“Identity theft is an ongoing problem in the United States. It is our duty as IRS Criminal Investigation to investigate identity theft and refund fraud and vigorously pursue those individuals who undermine the integrity of the U.S. tax system,” stated Special Agent in Charge Veronica F. Hyman-Pillot. “This case is a good example of solid investigative work on everyone’s part. We are proud to have prevented additional people from being victimized by these individuals, and causing further financial damage and personal inconvenience.”
The case was investigated by the Internal Revenue Service, assisted by the Ashburn Police Department. Assistant United States Attorney Jim Crane is prosecuting the case for the Government.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Fort Myers Man Sentenced to Prison for Methylone Drug ConspiracyRead the Press Release
Fort Myers, Florida – U.S. District Judge John E. Steele has sentenced Titus Lamar Bellot (28, Fort Myers) to five years in federal prison for conspiracy to possess with the intent to distribute the controlled substance methylone. He was convicted by a federal jury on February 13, 2015.
According to the testimony presented during the three-day trial, on April 21, 2014, United States Customs and Border Protection officials at an international mail facility in New York encountered an International Express Mail parcel from the People’s Republic of China. After searching the parcel, they determined that it contained methylone. U.S. Immigration and Customs Enforcement’s Homeland Security Investigations agents made a controlled delivery of the package to an address in Lehigh Acres. Deena Williams, who was convicted after a jury trial on February 5, 2015, accepted the package. Agents then entered the house and discovered that Williams had opened the package and removed the drugs. Bellot came to the house a short time later to pick up the drugs. Further investigation revealed that the package belonged to him.
This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Jeffrey F. Michelland.
Former Ringleader of Albuquerque-Based Drug Trafficking Organization Sentenced to Fourteen Years in Federal PrisonRead the Press Release
ALBUQUERQUE – Christopher Roybal, 35, the former leader of an Albuquerque-based drug trafficking organization, was sentenced this morning in federal court to 168 months in prison followed by five years of supervised release for his conviction on cocaine trafficking and money laundering charges. Roybal also is required to pay a $184,080.00 money judgment under the terms of his plea agreement.
Roybal was one of the 19 defendants charged in Dec. 2012, with drug trafficking and money laundering charges in a 60-count indictment. The indictment was superseded twice; first in Feb. 2014, to add a 20th defendant and a witness tampering charge, and again in Sept. 2014, to add another witness tampering charge and a heroin trafficking charge.
The charges filed in the case were the result of a 16-month multi-agency investigation into a drug trafficking organization headed by Roybal by which was led by the FBI, IRS and Albuquerque Police Department with assistance from the DEA, the HIDTA Region I Narcotic Task Force and the Bernalillo County Sheriff’s Office. The investigation, code-named “Operation Rain Check,” was designated as part of the Organized Crime Drug Enforcement Task Force (“OCDETF”) program. OCDETF is a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
The original indictment charged Christopher Roybal and ten others, with conspiracy to distribute large quantities of cocaine in New Mexico between Aug. 2011 and Dec. 2012. It also charged Christopher Roybal and nine others with conspiracy to distribute marijuana between Oct. 2011 and Dec. 2012. Additionally, the indictment included three separate money laundering conspiracies, 22 money laundering offenses, and 18 “telephone counts,” offenses alleging the use of a communications device to facilitate a drug trafficking offense. The indictment was superseded in May 2014, to add a new charge against George Roybal, 53, of Albuquerque, alleging that he threatened an FBI informant to prevent the informant from testifying at the trial of this case which was then scheduled to begin on May 19, 2014. It was superseded again in Sept. 2014, to add two new charges alleging another defendant attempted to murder an FBI informant to prevent that informant from testifying at the trial of this case which was then scheduled to begin on Nov. 10, 2014, and with distributing heroin in Bernalillo County, N.M., in May 2014.
On Feb. 25, 2015, Christopher Roybal pled guilty to Counts 1, 37, 38, 39 and 40 of the second superseding indictment, charging him with participating in a cocaine trafficking conspiracy, three money laundering conspiracies, and a substantive money laundering offense. In entering his guilty plea, Christopher Roybal admitted that between Aug. 2011 and Dec. 2012, he conspired with others to distribute kilogram quantities of cocaine in Albuquerque and Las Vegas, N.M. He also admitted participating in three conspiracies that laundered the proceeds of his drug trafficking organization. One conspiracy involved the transportation of drug proceeds from Albuquerque to California to pay for marijuana that was distributed by Christopher Roybal’s organization. The second and third conspiracies involved the laundering of Christopher Roybal’s drug proceeds through accounts at a bank and a credit union. As part of his plea agreement, Roybal agreed to forfeit his Albuquerque residence and a 1967 Chevrolet Camaro.
With the exception of one defendant who is participating in a pretrial diversion program under the supervision of the U.S. Probation Office, all 18 defendants have entered guilty pleas.
This case was investigated by the Albuquerque office of the FBI, IRS Criminal Investigation and the Albuquerque Police Department, with assistance from the DEA, the HIDTA Region I Narcotics Task Force and the Bernalillo County Sheriff’s Office. Assistant U.S. Attorneys Joel R. Meyers and Shana B. Long prosecuted the case. Assistant U.S. Attorney Stephen R. Kotz is responsible for litigating the related civil asset forfeiture actions.
The HIDTA Region I Narcotics Task Force is comprised of the Albuquerque Police Department, Albuquerque office of the DEA, Pojoaque Tribal Police Department, Rio Rancho Police Department, Sandoval County Sheriff’s Office and the Valencia County Sheriff’s Office. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Former Nightclub Owner Sentenced to 12 Years in Prison for Drug and Gun CrimesRead the Press Release
A 40-year-old Olympia, Washington man was sentenced today in U.S. District Court in Seattle, for drug distribution and illegal gun possession announced United States Attorney Annette L. Hayes. STEVEN ASIR THOMAS was convicted of Conspiracy to Distribute Controlled Substances, Money Laundering, Conspiracy to Possess Firearms in Furtherance of a Drug Trafficking Crime and being a Felon in Possession of a Firearm following a six day jury trial in April 2015. At sentencing U.S. District Judge John C. Coughenour said the sentence was driven by the amount of drugs involved and THOMAS’ intent to have an attorney assaulted because of a business dispute involving his nightclub.
“This defendant was brazen in his criminal conduct, bragging about his plans to distribute methamphetamine and cocaine, and launder money through a Seattle nightclub,” said U.S. Attorney Annette L. Hayes. “While he plotted assaults and ways to trade guns for drugs, he didn’t know law enforcement was listening to every word. Now instead of enriching himself at the expense of public safety, he will pay his debt to society by serving time in prison.”
According to records in the case and testimony at trial, THOMAS had owned various nightclubs in the Seattle area, and sought to open a new nightclub near the Seattle Center called “Ice Nightclub”. THOMAS discussed his plans with a person working with law enforcement as well as with an undercover agent. THOMAS claimed the club would be a cover to launder drug money, and would generate cash for additional drug purchases. In October 2013, THOMAS worked to set up a drug deal trading methamphetamine for assault rifles. On three other occasions, law enforcement seized drugs that were either delivered or ordered by THOMAS. In October 2013, THOMAS picked up a pound of methamphetamine from a source and then “sold” it to an undercover agent in Portland, Oregon. About a week later, another two pound load of methamphetamine was seized on a bus headed to Portland – the courier was bringing it to THOMAS. Finally, in March 2014, THOMAS arranged another one pound sale in Portland of highly pure methamphetamine to an undercover agent.
THOMAS used bank accounts set up in the name of Ice Nightclub to launder money he believed to be the proceeds of drug dealing. Some of the money was provided to THOMAS by undercover agents acting as drug dealers in order to ferret out the nature and extent of THOMAS’ wrongdoing. The plan that THOMAS came up with was for drug dealers to give him cash disguised as an investment in the club. Then THOMAS would write a check from Ice Nightclub accounts to an entity connected to the drug dealers to make it appear that the Ice Nightclub was paying for services rendered. THOMAS collected a fee from the “drug dealers” for his assistance in disguising the criminal source of the funds.
Finally, on March 27, 2014, law enforcement executed a search warrant at THOMAS’s residence. They found a loaded Glock 9 mm Model 19 firearm next to his bed. Also in the residence was evidence of drug dealing including cocaine, 14 cell phones, scales, currency bands and evidence of a previous marijuana grow. THOMAS is prohibited from possessing guns due to a felony drug conviction in 2006 in Arkansas.
“Individuals who create businesses that launder profits for drug trafficking organizations should understand that they will actually be the ones paying the price when they forfeit their freedom and the proceeds of their criminal acts,” said Brad Bench, Special Agent in Charge of ICE HSI in Seattle. “The sentencing of this defendant sends a clear message that law enforcement will not tolerate the actions of those who use the cover of legitimate business to conceal cash obtained from drug trafficking and associated acts of violence in order to bring dangerous narcotics into our communities.”
This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved. The case was investigated by U.S. Immigration and Custom Enforcement’s Homeland Security Investigations (HSI), the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) and the Seattle Police Department.
The case was prosecuted by Assistant United States Attorneys Jerrod Patterson, Nicholas Manheim, and Lisca Borichewski.